How have Scotland’s revenues from income tax been performing since income tax powers were transferred to the Scottish Parliament in April 2017?
This is clearly an important question to ask. The Scottish budget in any year is determined in part by the rate of growth of Scottish income tax revenues per capita since 2016/17 compared to the growth of equivalent income tax revenues per capita in the rest of the UK (rUK).
We are nearly at the end of the second year of Scottish income tax devolution. But official income tax revenue outturn figures for 2017/18 will not be published until this summer, whilst outturn figures for 2018/19 will not be available until summer 2020.
Whilst income tax revenue data is not yet available, HMRC has published some information on the number of taxpayers who pay tax through Pay as you Earn (PAYE), and the average income of those PAYE income taxpayers, in 2017/18 and the first two quarters of 2018/19.Continue reading