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Scottish income tax

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Scottish income tax

Old 5th Dec 2023, 08:24
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Scottish income tax

I have just read that the Scottish government are planning to increase income tax yet again, already higher than in the rest of the UK. This applies to all UK service personnel based north of the border. Though personnel are recompensed by the UK MOD for this increase in deductions from individuals pay, it is a significant amount of the defence budget at a time when many are calling for an increase in defence expenditure. Personally, I fail to understand how the Scottish government are allowed to get away with this; it does not happen to personnel serving in other countries.
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Old 5th Dec 2023, 09:49
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Originally Posted by sharpend
I have just read that the Scottish government are planning to increase income tax yet again, already higher than in the rest of the UK. This applies to all UK service personnel based north of the border. Though personnel are recompensed by the UK MOD for this increase in deductions from individuals pay, it is a significant amount of the defence budget at a time when many are calling for an increase in defence expenditure. Personally, I fail to understand how the Scottish government are allowed to get away with this; it does not happen to personnel serving in other countries.
That is a rather naive comment. In no other country will there be the enormously complicated overlay of intertwined legislation
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Old 5th Dec 2023, 10:00
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Originally Posted by sharpend
IPersonally, I fail to understand how the Scottish government are allowed to get away with this; it does not happen to personnel serving in other countries.
Blame the UK Government for writing the legislation to not exempt Service personnel when they gave the Scottish parliament extra tax raising powers.

Other countries aren't part of the UK
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Old 5th Dec 2023, 10:18
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Write to Douglas Ross, MP for Moray (Lossiemouth and Kinloss). He takes a close interest in this subject.
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Old 5th Dec 2023, 11:58
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It's called devolution Holyrood has devolved powers over all but foreign policy, defence and immigration. They can raise taxes as they see fit, then give it all away on bus passes and free prescriptions if they choose.
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Old 5th Dec 2023, 12:52
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I believe in the US service(wo)men pay state income tax (where applicable) according to residence on top of federal income tax. Active duty pay etc. can be exempt when serving out of country or state. (Are any of our US members able to confirm or deny?) One could argue we should have a similar arrangement those habitually (but not presently) resident in NI, Wales or England should be exempt but those habitually resident in Scotland should be treated the same as other Scots but exempt if serving outside Scotland - perhaps for those joining after a certain date. CILOCT for those resident in service acommodation plus 50% Council Tax on own home elsewhere classed as second home come to mind. I know if I was living in a private home in Moray in the same CT band as now I would be paying less than I am here so there is a small element of swings and roundabouts. If HMG brought in law to exempt servicemen the SNP would demand and probably get direct payment to compensate for lost revenue and undoubtedly it would be offset against the Defence vote. Paying compensation to individual servicemen has the benefit of only being incurred when there is a liability so probably keeps the total amount under more effective control.
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Old 6th Dec 2023, 04:19
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Originally Posted by sharpend
I have just read that the Scottish government are planning to increase income tax yet again, already higher than in the rest of the UK. This applies to all UK service personnel based north of the border. Though personnel are recompensed by the UK MOD for this increase in deductions from individuals pay, it is a significant amount of the defence budget at a time when many are calling for an increase in defence expenditure. Personally, I fail to understand how the Scottish government are allowed to get away with this; it does not happen to personnel serving in other countries.
I doubt very much that it is a significant part of the defence budget, but they are not “getting away” with anything. Devolution is to blame, but if the Scottish government had the gumption, they would be reducing the rate of income tax to attract more taxpayers to Scotland rather than continuing to milk the captive ( currently) audience.
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Old 6th Dec 2023, 17:31
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Originally Posted by SLXOwft
I believe in the US service(wo)men pay state income tax (where applicable) according to residence on top of federal income tax. Active duty pay etc. can be exempt when serving out of country or state. (Are any of our US members able to confirm or deny?)
The situation regarding US Active Duty military paying state taxes depends on their "state of legal residence" - ie the state they were in when they joined the military which they can choose to change by a variety of methods such as owning property, registering vehicles, obtaining a driving license etc - rather than where they are assigned by Permanent Change of Station (PCS) orders.

That's why US military are not required to change which state their vehicles are registered in and their driving license is issued in when they PCS.

There are huge differences in both state income tax rates and property tax rates.

For instance, there is no state income tax in NV - compared to 6% in CA for those earning $70K > $90K (GBP 56K > GBP 72K).

Property tax in NV on a $1M home is around $8K whereas it is $10K on a $450K home in NJ (the highest taxed in the USA). NJ also has a 1% "mansion tax" on purchasing homes.

So it's a lot more complex over here in the USA.

https://www.militaryonesource.mil/fi...-the-military/
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