PAYE13145 - Coding: coding: general principles: Scottish variable rate

The Scottish Parliament have the power to increase or decrease the basic rate of income tax set by the UK Parliament by a maximum of 3 pence. Although the Scottish Parliament have not used the tax varying powers HMRC are prepared to implement the Scottish Variable Rate (SVR) if requested.

From April 2000 an automatic process was developed to maintain the SVR signal where the individual’s address is in Scotland. Previously the automatic process is run twice a year to set or unset the SVR indicator as appropriate

A work item will be generated when the latest tax code is not compatible with the SVR indicator on the record. This work item will only be invoked when there is a difference in the Scottish variable rate. The work item is