Best Tax Lawyers in Aberdeen

About Tax Law in Aberdeen, United Kingdom

Tax in Aberdeen sits within the United Kingdom tax framework, administered nationally by HM Revenue and Customs, with important Scottish elements administered by Revenue Scotland and Aberdeen City Council. Most taxes are UK-wide, such as Income Tax administration, National Insurance, Capital Gains Tax, VAT, and Corporation Tax. Scotland sets its own rates and bands for the Scottish component of Income Tax on employment, pensions, and most trading income, and has devolved taxes including Land and Buildings Transaction Tax and Scottish Landfill Tax. Council Tax and non-domestic rates are set and collected locally.

Aberdeen has a distinctive economy, with many residents and businesses connected to energy, engineering, maritime, and technology. Offshore and cross-border work, contractor engagements, international assignments, property letting for a mobile workforce, and business restructurings are common. These patterns often affect residence status, payroll withholding, employment law interactions, and specialist tax regimes. Understanding how UK and Scottish rules interact is essential if you live, work, own property, or run a business in and around Aberdeen.

Why You May Need a Lawyer

You may benefit from a tax solicitor or chartered tax adviser in several situations. If you receive an HMRC or Revenue Scotland enquiry, compliance check, or assessment and need help managing risk, responding, or appealing. If you face penalties, late filing surcharges, or time to pay negotiations and want to reduce liabilities or agree affordable arrangements. If you are unsure about UK tax residence, domicile, or double tax treaty relief because you work offshore, split time between countries, or are relocating to or from Aberdeen.

Legal help is also valuable for IR35 and off payroll working status, contractor engagements, and employment law coordination. For buying, selling, or letting Aberdeen property, including Land and Buildings Transaction Tax, Additional Dwelling Supplement, and reliefs or refunds. For setting up, buying, or selling a business, extracting profits tax efficiently, share incentives, or corporate reorganisations. For VAT registration, Making Tax Digital, and disputes about assessments or penalties. For energy sector specific issues including ring fence rules, the Energy Profits Levy, and capital allowances. For inheritance, gifts, or estate planning when Scottish succession rules, English rules, and cross border assets meet. For business rates or Council Tax disputes and appeals.

Local Laws Overview

Income Tax in Scotland. The Scottish Parliament sets rates and bands for the Scottish component of Income Tax on employment, pensions, and most trading income for Scottish taxpayers. HMRC still collects the tax and issues tax codes with an S prefix. Savings and dividend income use UK rates and bands. If you live in Aberdeen for most of the year, you are likely a Scottish taxpayer and the Scottish bands will apply to your earned income. Rates and thresholds change each tax year, so always check the current figures before making decisions.

Land and Buildings Transaction Tax. Scotland uses Land and Buildings Transaction Tax rather than Stamp Duty Land Tax. For most residential purchases, current LBTT bands apply with a nil rate on the initial slice, then increasing percentages at higher bands. First time buyer relief raises the nil rate threshold for qualifying buyers. The Additional Dwelling Supplement applies to most purchases of second homes and buy to let property and is charged at a separate percentage on the full price. ADS refunds may be available if you replace your main residence within the allowed period. LBTT returns and payment are generally due within 30 days of the effective date of the transaction. Revenue Scotland administers LBTT and ADS.

Council Tax in Aberdeen. Aberdeen City Council sets the annual Council Tax for each band and provides reductions, discounts, and exemptions. Common reductions include a 25 percent single person discount, exemptions for full time students, and means tested Council Tax Reduction for low income households. You can challenge liability or banding and there is a formal appeal process with strict time limits.

Non domestic rates. Business properties in Aberdeen are charged non domestic rates based on rateable value and Scottish multipliers set annually. Reliefs may include the Small Business Bonus Scheme, empty property relief, charitable relief, and sector specific reliefs that the Scottish Government may introduce. Appeals about rateable values follow the Scottish process and deadlines are tight after valuation notices.

VAT and Making Tax Digital. VAT is UK-wide. Registration is required when taxable turnover exceeds the current threshold. From April 2024 the registration threshold increased to 90,000 and the deregistration threshold to 88,000. Most VAT registered businesses must keep digital records and file through compatible software. Errors can often be corrected on the next return within limits, otherwise a separate disclosure is needed.

Corporate and energy sector taxes. General Corporation Tax is UK-wide. Oil and gas activities within the UK and the UK Continental Shelf are subject to a ring fence regime, with ring fence Corporation Tax and a supplementary charge. An Energy Profits Levy applies to profits from UK oil and gas production and has been extended with a price floor mechanism. Rules in this area are highly technical and change frequently, so specialist advice is recommended.

Enquiries, assessments, and appeals. HMRC enquiries and Revenue Scotland reviews must follow statutory procedures. You usually have 30 days to appeal an assessment or penalty. Disputes can be settled by review, alternative dispute resolution, or by appealing to the tax tribunals. HMRC cases go to the First tier Tribunal Tax Chamber. LBTT and ADS cases go through the Scottish Tribunals structure. Getting timely advice is crucial to protect appeal rights.

Frequently Asked Questions

Do Scottish Income Tax rates apply to me if I live in Aberdeen but work elsewhere in the UK

Yes, if you are a Scottish taxpayer, which is based on where your main place of residence is, not where you work. If your main home is in Aberdeen for most of the year, HMRC will normally treat you as a Scottish taxpayer and your PAYE code will start with S. Your savings and dividend income continue to use UK rates.

What are the key deadlines for Self Assessment

For a tax year ending 5 April, paper returns are generally due by 31 October and online returns by 31 January. Balancing payments and first payments on account are due by 31 January, with a second payment on account due by 31 July. Interest and penalties apply if you miss deadlines. Register for Self Assessment promptly if you need to file.

How does LBTT differ from Stamp Duty Land Tax when buying in Aberdeen

LBTT is Scotland’s property transaction tax with its own bands, reliefs, and the Additional Dwelling Supplement. If you buy in Aberdeen you file an LBTT return with Revenue Scotland, not an SDLT return. First time buyer relief and ADS rules differ from England and Wales, so check the Scottish rules before you commit to a purchase.

Can I get an ADS refund if I sell my previous main home after buying my new Aberdeen home

Often yes. If you paid ADS when buying your new home and then dispose of your previous main residence within the allowed period, you can usually claim a refund. The claim must be made within strict time limits and you will need evidence of residence and dates, so keep thorough records.

I work offshore from Aberdeen. How do the rules affect my tax residence and liabilities

The UK Statutory Residence Test determines residence based on days in the UK and connecting factors. Offshore energy work on the UK Continental Shelf often counts as UK work for tax purposes. Special rules can apply to seafarers, but many offshore workers are not classed as seafarers. Because the details are nuanced, residence and work location should be reviewed case by case.

Do I need to register for VAT for my Aberdeen business and what is the threshold

You must register if your taxable turnover exceeds the current threshold, which is 90,000 from April 2024. You can also register voluntarily below the threshold. Once registered, you must keep digital records and comply with Making Tax Digital filing rules unless exempt.

What should I do if I receive an HMRC enquiry letter or a Revenue Scotland LBTT check

Do not ignore it. Note the deadlines, gather records, and consider professional advice before responding. You can request a time extension with reasons. If you disagree with findings, you usually have 30 days to appeal. Alternative dispute resolution may help resolve complex disagreements without a hearing.

Are Council Tax discounts available in Aberdeen for students or single occupants

Yes. Full time students can be exempt or not counted for Council Tax, and a single adult occupier can usually claim a 25 percent discount. Other reductions exist for disabilities and low income through Council Tax Reduction. Contact Aberdeen City Council for eligibility and how to apply.

How do IR35 and off payroll working rules affect contractors in Aberdeen

For medium and large private sector clients, the client decides status and, if inside IR35, tax is deducted via payroll. For small clients, the contractor remains responsible under IR35. Status depends on control, substitution, and mutuality of obligation, among other factors. Contracts and working practices should be reviewed together.

What are typical penalties for late filing or late payment and can they be reduced

Penalties and interest apply for late returns and payments to both HMRC and Revenue Scotland. The amounts depend on delay length and behavior. You can often reduce penalties by making an unprompted disclosure, showing reasonable excuse, or cooperating during an enquiry. Time to Pay arrangements may help manage cash flow.

Additional Resources

HM Revenue and Customs. For UK-wide taxes, Self Assessment, PAYE, VAT, Corporation Tax, compliance checks, and Time to Pay.

Revenue Scotland. For Land and Buildings Transaction Tax, Additional Dwelling Supplement, Scottish Landfill Tax, guidance, and reviews or appeals.

Scottish Government. For Scottish Income Tax policy, non domestic rates policy, and relief schemes.

Aberdeen City Council. For Council Tax, Council Tax Reduction, discounts and exemptions, and non domestic rates billing and local reliefs.

Law Society of Scotland. To find a regulated Scottish solicitor with tax expertise.

Chartered Institute of Taxation and Association of Taxation Technicians. To find Chartered Tax Advisers and technicians.

ICAS and ACCA. To find chartered accountants with Scottish and UK tax experience.

Citizens Advice Scotland. Free general guidance on benefits, debt, and basic tax queries.

TaxAid and Tax Help for Older People. Free help with tax problems for people on low incomes.

Scottish Tribunals and the First tier Tribunal Tax Chamber. Information about tax appeals processes and procedures.

Next Steps

Clarify your issue. Write a short summary of your situation, what taxes are involved, the tax years affected, and what outcome you want. Note any deadlines on letters you have received.

Gather documents. Collect returns, computations, payslips, bank statements, contracts, invoices, property purchase and sale documents, tenancy agreements, LBTT returns, and correspondence with HMRC, Revenue Scotland, or Aberdeen City Council.

Check your status. If relevant, determine whether you are a Scottish taxpayer, whether you should be in Self Assessment, and whether you must be VAT registered. Verify if ADS applied and whether you might qualify for a refund.

Seek professional advice. Contact a Scottish solicitor or Chartered Tax Adviser with experience in the relevant area, such as property, HMRC disputes, offshore work, or corporate tax. Ask about experience, scope, fees, and timelines. Confirm they are regulated by the Law Society of Scotland or an appropriate professional body.

Protect your rights. Diary appeal and payment deadlines. If cash flow is tight, consider Time to Pay for HMRC liabilities. For Council Tax or business rates, contact Aberdeen City Council early to discuss reductions or payment plans.

Stay compliant. File outstanding returns, correct errors promptly, and use Making Tax Digital compatible software if required. Keep thorough records and review your position as thresholds and rates change each year.

This guide provides general information only. Always take advice tailored to your circumstances before making decisions or lodging appeals.