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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 4 May 2021
  6. Current session: 13 May 2021 to 15 September 2025
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Displaying 2603 contributions

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Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Colin Beattie

However, as the auditor, you would have a view on that.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Colin Beattie

However, paragraph 17 says that

“HMRC ... cannot easily track and monitor compliance activity in Scotland and this affects its ability to collect performance data about the extent of Scottish non-compliance”.

Without data, it is not really possible to project accurately into the future.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Colin Beattie

If I go through the report and compare what I regard as anomalies with what I took out last year, will I see any improvement?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Colin Beattie

I move to paragraph 1.5 of part 1, which mentions

“The reduction in Scottish income tax outturn arising from these adjustments”,

which are estimates for tax due, uncollected amounts and tax reliefs. It goes on to say:

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

Again, HMRC is using UK figures to work out some sort of calculation, but the pattern of Scottish taxpayers—versus those in the rest of the UK—is very different, as far as the information that we have seen here is concerned. How accurate can that estimate be? What kind of distortion comes in there?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Colin Beattie

There are one or two areas that I would like to examine more closely. Again, though, there are an awful lot of estimates in here that must distort the final figure.

Paragraph 15 of the NAO report states:

“There are no risks identified in the Scottish SPR which are specific to Scotland as HMRC assesses that compliance risk in Scotland is consistent with the rest of the UK.”

Given the different mix of taxpayers and so on across the rest of the UK, is that statement accurate?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Colin Beattie

In connection with the compliance yield of £280 million, paragraph 16 states that

“HMRC calculates these figures as a proportion of the equivalent UK figure, rather than ... Scotland-specific data to quantify the risks.”

That does not seem as though it could be accurate.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Colin Beattie

I said at the beginning that I took out 32 cases in which parts of the revenue and liabilities are estimated. The extent of the issues is such that, if you take one, it is not that big but, if you take 32, you are looking at a bigger distortion. I hope that, over a period, that will gradually reduce with experience and an understanding that there are areas to be sorted.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Colin Beattie

Perhaps the Auditor General for Scotland could comment on engaging with the Scottish Government on that.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Colin Beattie

I will stop there, because a lot of my questions are for HMRC to respond to. I will simply say that there seem to be huge inaccuracies in the calculations for the Scottish rate of income tax and a great deal of work needs to be done to get an accurate Scottish figure.

Economy and Fair Work Committee

Disability Employment Gap

Meeting date: 8 February 2023

Colin Beattie

Do you have any comparative data on provision of services in more rural and remote areas and in urban areas?