PAYE operation: taxation of jobseeker’s allowance: temporary short time working compensation scheme
Any payments made to workers under this scheme are outside the rules for taxation of Jobseeker’s Allowance. PAYE applies to these payments in the usual way.
The introduction of the Scottish rate of Income Tax from 6 April 2016 individuals will pay tax at the UK (England, Wales and Northern Ireland) or Scottish Income Tax rate(s) depending on the individual’s residency status.
The Income Tax Residency Status screen on NPS will display ‘Scottish Taxpayer’ for the tax year where the individual is liable to pay tax at the Scottish rate(s) and their tax code will have an S prefix. Further information about the Scottish rate of Income Tax is given at [PAYE100035](https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye100035).