Scottish
Variable Rate 
Use
With effect from 6 April 2000, the Scottish Parliament can invoke a variance to the Basic Rate of Income Tax for Scottish taxpayers by plus or minus 3 pence in the £ at half penny rests.
The tax functionality for Great Britain has therefore been modified to meet these requirements. Payroll GB now allows Scottish taxpayers to be identified in the system and a basic rate of tax deducted as defined by the Scottish Parliament. Tax for Scottish taxpayers is calculated in line with statutory requirements as per the specification supplied by the Computer Users Notes Series 9 No 10 October 1998.
The GB tax functionality now provides the following:
- Tax calculated at the correct rate for Scottish taxpayers
- Tax and tax refund calculated correctly when applying a new tax code in mid tax year
- Tax Data (0065) infotype amended to enable tax details for Scottish taxpayers to be entered on receipt of the new P6 and P9 forms
- Pay and tax details checked on receipt of form P45 in the Tax Data (0065) infotype
The Tax Data (0065) infotype has been modified to allow the SVR prefix S to be entered in the Tax code field. The length of this field is now seven digits. As with the other tax codes, the source from which the SVR "S" code is derived is the P6 and P9 forms. The new S code will appear on the employee's payslip in the new format, for example S419H.
When an SVR employee leaves a company, a P45 will be produced in the new format, showing the S prefix. At tax year end, forms P14 and P60 will also be available in the new format, showing the S prefix in the relevant fields for SVR taxpayers.
Tax codes
Tax code BR is used to deduct tax at basic rate and is stored as a percentage in table T5G02. At present, the rate is 23%. For tax code SBR, this rate is increased or decreased by the Scottish Variable Rate. For tax codes with no prefix other than "S" or preceded by "SK", only earnings within the basic rate earnings band are subject to the Scottish Variable Rate (table T5G01). Tax codes D, NI, and NT are not relevant to Scottish tax.
Constant SVRTE
The variable rate set by the Scottish Parliament is stored as the constant SVRTE in table T511K. Since the table cannot hold minus values, the value of SVRTE is the SVR plus 100.
For example,
SVR = 2.5, then constant value = 2.5 + 100 = 102.5
SVR = -2.5, then constant value = -2.5 + 100 = 97.5
Note
Constant SVRTE will be updated each year as appropriate to reflect the new SVR.
Wage type /521 (Scottish tax part)
The new wage type /521 shows the SVR tax difference in table RT. When a tax code starts with S, the routine net_tax is processed twice, once to calculate the Scottish tax amount, which is saved in wage type /501 (Tax paid), and a second time without applying the SVR. The difference between both amounts is shown in wage type /521.