Scottish Income Tax - operation by HMRC: service level agreement

The Agreement Framework

Parties to the Agreement

This Agreement is entered into between His Majesty’s Revenue and Customs and the Scottish Government.

Duration of the Agreement

Notwithstanding the date of signatures this updated Agreement, and its preceding iteration, have effect from 6 April 2017. This document has no expiry date, but it will cease to have effect if SIT powers are repealed. The document may be brought to an end by agreement between HMRC and the Scottish Government.

Legal Effect

This is an agreement between HMRC and the Scottish Government. It has no formal legal force. Nevertheless, both parties expect its terms to be followed. Arrangements for dealing with disputes are set out in this Agreement.

Derivation

The Fiscal Framework agreed between the UK and Scottish Government sets down that the Scottish Government will reimburse the UK government for net additional costs wholly and necessarily incurred as a result of the implementation and administration of Scottish Income Tax powers.

The previous Memorandum of Understanding has been incorporated into this Agreement.

This Agreement should be read in conjunction with the Fiscal Framework.

Review and Amendments

This Agreement will be reviewed after the confirmation of UK and Scottish Government Income Tax rates and bands each year to review compliance with the stated aims and ensure that the Agreement remains fit for purpose. This Agreement can also be reviewed at the request of either party.

HMRC and the Scottish Government need to inform the other as soon as possible of any circumstances which might lead to the need for an alteration to the obligations of either party under this Agreement.

Any significant changes to the agreement shall be negotiated and approved by the signatory parties. Any minor variations to the delivery of any of the subsidiary agreements should, however, be able to be agreed between the identified SPoCs within HMRC and the Scottish Government.

Any changes to the content of the Agreement will be marked by the issue of a new, dated, version number.

Business Continuity

Both parties must inform the other immediately if any issue arises relating to business continuity in respect of the administration and collection of SIT.