The National Audit Office has published a report today on HMRC’s administration of Scottish income tax, including the final calculation of Scottish revenues for the 2017/18 tax year.
The Auditor General for Scotland, Caroline Gardner, provides additional assurance to the Scottish Parliament on the work of the NAO in this area.
In her accompanying report, she says the NAO’s approach was reasonable and covered the key audit risks. She also draws attention to the main findings in the NAO report, and sets out what they mean for the Scottish budget.
Both reports will be presented to the Scottish Parliament’s Public Audit and Post-legislative Scrutiny Committee.
Scottish income tax is a key part of the financial powers being delivered because of the 2012 and 2016 Scotland Acts. Scottish income tax outturn data for 2017/18 will be reflected in budget calculations for the 2020/21 Scottish budget.
Scottish income tax outturn data for 2017/18 will be reflected in budget calculations for the 2020/21 Scottish budget.
Ms Gardner said:
“I am pleased that the NAO has been able to report that HMRC has implemented adequate processes and that the outturn of income tax for 2017/18 is fairly stated.
“Accurate identification of Scottish taxpayers is fundamental to the operation of the fiscal framework, the size of the Scottish budget, and in ensuring that the right amount of tax is collected from individuals.”
The Auditor General has reported extensively on the implementation of the new financial powers. She will produce a further update on how the Scottish Government is managing the implementation of the new social security powers in spring 2020.
Audit Scotland recently published a briefing on the operation of the Fiscal Framework, including arrangements for Scottish income tax.