The Freelancer & Contractor Services Association (FCSA) has welcomed Scotland’s decision to keep tax rates aligned with the rest of the UK.
The trade body, whose members provide professional services that support the UK’s contractors and freelancers, is keen to see the UK economy remain united and stable as the flexible and mobile workforce works to support businesses both north and south of the border.
FCSA believes that different tax rates could cause difficulties for some mobile workers in establishing whether they are Scottish taxpayers, as may be the case for some oil rig workers for example, who work on a contracting basis. Furthermore, depending on how residency is determined could have a huge impact for the flexible workforce in deciding whether to undertake certain assignments if it involves relocating temporarily and potentially paying different rates of tax.
Julia Kermode, CEO of the FCSA said: “The UK economy relies on the skills that the flexible workforce can provide on tap across the UK, in the north and the south. Contractors and freelancers already have to deal with a lot of red tape imposed upon them by policy makers so I am pleased that John Swinney has seen common sense and kept income tax rates in line with the rest of the UK. Should the idea appear on the agenda in the future I would hope that HMRC engages and communicates more vocally and clearly with all those who could be affected by SRIT so that everyone understands what it might mean for them wherever they live and work.”