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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 11 August 2025
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Displaying 2597 contributions

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Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

I accept the point, but I am trying to highlight issues with regard to uncertainties around the figures that are being produced.

Flicking through your report, which was an excellent bedtime read, I note that in paragraph 2.13 on page 21 you say:

“HMRC confirmed the residency status for 92% of Scottish and Welsh pension scheme members ... and provisionally estimates that 94% have been confirmed following the 2020-21 tax year.”

That percentage does not seem high—in fact, it seems quite low. You would think that pension scheme members would be easy to pick up.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

It is known that, in Scotland, a higher proportion of people give to charity than is the case in the rest of the UK. On that point, I note that paragraph 2.14 on page 22 says:

“HMRC does not have systems in place to establish the residency of taxpayers donating to charity”.

All those anomalies add up. You might say that each one has a small impact but, when you look at them in aggregate, it starts to become a concern.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

But in your report you say that the dividend and savings elements are bound up with the income tax figure for the UK, which means that we are taking a proportion of that as part of our loss. That does not seem right.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

[Inaudible.]—publish the relative quality.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

With regard to paragraph 12 on page 8 of the report, I find it astonishing that taxpayers do not have to bother with advising a change of address. I realise that this is not within your powers, but how can the system possibly be robust if people can just change address willy-nilly and vanish?.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

So it is a notional figure. What is its purpose?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

Surely it indicates that there is a flaw in the process.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

Given that the problem has been happening every year since the system was instituted, it must endemic to it.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

I turn to one or two specific issues. Paragraph 1.2 on page 10 says:

“HMRC calculates the final outturn figure from several components”,

but it does not actually mention what those components are. I do not know whether explaining them will require a lengthy response. If it requires just a short one, that will be fine, but if not, you can perhaps drop us a note.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

That would be excellent.

Paragraph 1.5 on page 11 says:

“In some areas of the calculation, data are not available in sufficient detail to identify income tax liabilities, reliefs or other adjustments relating to individual taxpayers.”

Again, that will require making a huge estimate.