Tax cost claims
THE Scottish Office claim that allowing different tax rates to be levied in Scotland would cost business £1 billion (your report, 18 November) is farcical. The PAYE system requires that all businesses submit their tax records online within the next couple of years. This means nearly all businesses are already using software to calculate tax. HMRC already produces a CD which allows any ordinary computer to calculate income tax, national insurance and employer's national insurance.
It would be simple to link Scottish postcodes to the tax record and apply the different tax rate.
Since this is not going to require any additional input by the employer, it is difficult to see how it would increase businesses' administration costs.
BRUCE D SKIVINGTON
Pairc a Ghlib
Strath Gairloch, Wester Ross
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Monday 20 February 2012
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