Scottish Income Tax

Umbrella Company Workers Scotland

6 January 2015

From April 2016 Umbrella Company Workers in Scotland could be subject to different rates of Income Tax (PAYE) than other umbrella company workers in the rest of the UK. This follows new legislation via The Scotland Act 2012.

HMRC are currently consulting how this would work but Scottish Parliament will be free to set its own rates and to introduce or abolish certain taxes. These taxes could be higher or lower than the rest of the United Kingdom.

HMRC will issue appropriate tax codes to those caught by the Scottish tax rates and the employer will then be responsible for paying the correct amounts in respect of PAYE and National Insurance to HMRC.

A Scottish taxpayer will be determined by the location of an individual’s main residence. It would not therefore apply to an English contractor working temporarily in Scotland.

Umbrella advises contractors working in England, Scotland, Wales and Northern Ireland.

Telephone 0800 121 6513.