Devolving tax powers to the Scottish parliament could make the system even more of a “dog’s dinner” than it is now, according to a group of industry experts.
Hastily drawn up in the wake of last month’s independence referendum, the proposals to hand over more power to Holyrood have been met with widespread scepticism. Critics claim that the costs and administrative burden involved in such a move would be a huge obstacle for HMRC to overcome.
In a recent meeting, the Treasury Select Committee was told that tax devolution would create “uncertainty and complexity” within the system, and could result in less revenue for the taxman. Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants (ACCA), warned that neither HMRC nor Revenue Scotland had the capability to simultaneously manage two Pay As You Earn (PAYE) models. … Continue reading