National Audit Office reports on Scottish Rate of Income Tax

The NAO has published a report today on HMRC’s administration of the Scottish Rate of Income Tax (SRIT) which operated for the first time in 2016/17. 

The report is available to view here.

This is the third year of audit reporting on the SRIT. The Auditor General for Scotland, Caroline Gardner, has again worked with the NAO’s Comptroller and Auditor General to provide additional assurance to the Scottish Parliament alongside the work of the NAO. 

In her report she says the NAO’s findings and conclusions are “reasonably based” and confirms her satisfaction with an audit approach that “covered the key audit risks”.

Both reports will be presented to the Scottish Parliament’s Public Audit and Post-legislative Scrutiny Committee.

Caroline Gardner said:

“The administration of the Scottish income tax is a key part of the substantial package of new financial powers being delivered as a result of the 2012 and 2016 Scotland Acts.

These powers are substantially changing the landscape of public finances in Scotland. I will continue to work with the Comptroller and Auditor General to develop our joint audit approach, and to provide assurance to the Parliament and the public that all of the new powers are being publicly scrutinised and reported on.”

Ms Gardner has reported extensively on the implementation of the new financial powers – this work is available here. She will produce her fourth update on how the Scottish Government is managing implementation of the new powers in Spring 2018. This audit will focus on the devolved social security powers, given their scale, complexity and potential financial impact.

The Auditor General's report to the Scottish Parliament on SRIT can be downloaded here.

Any enquiries on the Auditor General for Scotland’s SRIT assurance paper document should be directed to pmcfall@audit-scotland.gov.uk  on 0131 6251663 or media@audit-scotland.gov.uk.

Media enquiries concerning the NAO report should be directed to Sam Roach, in the NAO press office.