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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 10 August 2025
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Displaying 3298 contributions

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Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Okay. Thanks very much indeed. It has been quite a long session. I thank our four witnesses for their attempts to answer our questions.

We are at a point where you have committed to giving us a bit more information and a bit more of your analysis, as and when those are available, and we very much welcome that. We may need to follow up a little bit more on our conversation about exhibit 3 in the Audit Scotland report—the terminology and what is and is not meant by different rows and columns in that presentation.

There have been some really useful points of discussion this morning, and some things that I think we will want to follow up as a committee.

I echo remarks made by other members of the committee that we very much appreciate that you have paid heed to some of our areas of interest in previous years, particularly, for example, where there has been a failure by employers to properly comply with the S code requirements and what the profile of those employers looks like. We very much encourage you to keep on working on that.

I draw this morning’s public session to a close by thanking Alyson Stafford and Lorraine King from the Scottish Government, and Jonathan Athow and Phil Batchelor from HMRC. Thank you very much indeed. We will now move into private session.

11:23 Meeting continued in private until 11:53.  

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Thank you very much. The deputy convener, Jamie Greene, will ask the last round of questions.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Do you retrospectively check how accurate the estimates and adjustments were—particularly the estimates—and set them alongside the actual outturns?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

In the interests of time, I go straight to Stuart McMillan to put some questions.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

You have already spoken about additional assurance, more checks and so on, so that is already built into your work programme, is it not?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

I turn to the vexed question of the estimates and adjustments that take place. We are looking at the income tax revenues for 2022-23. There is an estimate that covers about ÂŁ1 billion-worth of tax revenue out of a tax take of ÂŁ15 billion that year. That seems to us to be, on the surface, quite a high figure. Is that the level of estimate and adjustment that you would expect? Is it an apportioning of a United Kingdom figure that has been transposed into the Scottish context? To what extent is an adjustment made for the profile of taxpayers in Scotland?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

So 15 to 20 per cent is due to behavioural factors. The rest is due to things such as the fiscal framework and so on, is it not?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Can we get a succinct answer to that question?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

I take you back to one of your previous answers, which I think will be of interest to the committee. You mentioned that when the Government was contemplating introducing a new tax band—the advanced rate of tax—you signed a confidentiality agreement with HMRC and you set to work. Did you set to work on looking at whether that was feasible, or did you set to work on setting up the systems?

10:15  

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Richard Leonard

Okay. I presume that there was no question but that the answer would have been that it was feasible.