Performance overview

Introduction

This section outlines Revenue Scotland’s purpose and vision, our key activities, organisational structure, strategic objectives, and the key risks we faced during the financial year.

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Who we are and what we do

Revenue Scotland was established under the Revenue Scotland and Tax Powers Act 2014 (RSTPA). We are responsible for the collection and management of the fully devolved Scottish taxes: Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT). We are currently working on the introduction of two new devolved taxes, Scottish Aggregates Tax (SAT) and Scottish Building Safety Levy (SBSL).

As a Non-Ministerial Office and a Crown Body, we are part of the Scottish Administration and we are accountable directly to the Scottish Parliament, ensuring the impartial administration of taxes. We provide policy development support through the provision of advice, data, and information based on our operational experience to the Scottish Government which is responsible for tax policy and the setting of tax rates and bands.

We are also proud to work alongside the Scottish Fiscal Commission (SFC), which is responsible for providing independent forecasts of tax revenue in line with the Fiscal Framework. To aid forecasting work, we provide anonymous, aggregated SLfT and LBTT data to the SFC.

We delegate specific functions for SLfT collection to the Scottish Environment Protection Agency (SEPA) and collaborate with His Majesty’s Revenue and Customs (HMRC) on tax compliance activity. We also actively participate in the British Isles Tax Authorities Forum, working closely with other tax authorities to share knowledge and best practices in tax collection and management. The Devolved Tax Accounts published alongside the Resource Accounts for Revenue Scotland demonstrate the value achieved from the operations of Revenue Scotland in the operation of the Devolved Taxes.

How we are governed

The Revenue Scotland Board is responsible for the strategic direction, oversight, and governance of the organisation. As at the 30 March 2025, the Board comprised seven 

members appointed by Scottish Ministers through the Scottish Public Appointments process. Board members provide specialist knowledge in key areas and act as ambassadors for the organisation.

The Board has two committees: the Audit and Risk Committee (ARC) and the Staffing and Equalities Committee (SEC), which provide direction, support and detailed scrutiny of key areas of work and report on these matters to the Board. The Chief Executive is accountable to the Board and acts in a personal capacity as the Accountable Officer for Revenue Scotland.

The ARC supports the Accountable Officer on matters related to risk, control, governance and associated assurance processes. The Committee reports to the Accountable Officer and the Board following each of its meetings, through an annual report on its activities and effectiveness and via additional reports on emerging issues as and when required. The Chief Executive is responsible for the day-to-day leadership and operation of the organisation.

On the 1 July 2025 we welcomed the appointment of two new members to our Board, Gillian Wheeler and Alison Macdonald, following a formal Public Appointments process which had commenced during 2024-25. These appointments will be for an initial period of three years from the 1 July 2025 to 30 June 2028. 

Gillian Wheeler is a senior executive, international tax lawyer, and mediator with extensive experience across legal, corporate, and professional services. Gillian brings deep expertise in governance, risk, finance, and organisational change, with a strong track record across sectors including property, healthcare, energy, and finance.

Alison Macdonald is a Chartered Banker with senior experience in financial services, including as Chief Controls Officer at Lloyds Banking Group. She brings expertise in risk, governance, and strategic change, and holds non-executive roles focused on sustainability and inclusion. She is Chair of climate resilience charity Verture and Trustee of Lar Housing Trust.

These appointments follow Martin McEwen’s departure at the end of June 2025 and in anticipation of Jean Lindsay stepping down in June 2026.

We warmly welcome Gillian and Alison, who will bring a wealth of diversity and experience to the Board. 

We have also taken action to bolster our Board committees, through the appointment of non-voting, co-opted, members.

Biographies of the new and co-opted members can be found on our website.

Further details about the activities of the Board, committees, and staff can be found in the Accountability Report section of the Annual Report.

Our organisational structure

Our Senior Leadership Team is led by the Chief Executive and includes the Head of Tax, the Head of Corporate Functions, and the Head of Legal Services. It provides operational leadership, and the direction and coordination of the delivery of our strategic outcomes.

Our organisational and team structure is depicted in the diagram below, providing a visual representation of the Senior Leadership Team’s role within our organisation.

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How we are funded

Revenue Scotland is part of the Scottish Administration, and our budget is set by the annual Budget Bill. The Scottish Government liaises with us to identify our budgetary requirements which are then reflected in the Budget Bill which Ministers present to the Scottish Parliament. Where additional funding for major programmes is required, proposals for funding are developed in line with the guidance on business cases in HM Treasury’s ‘The Green Book: appraisal and evaluation in central government’.

We are responsible for managing our budget for each financial year to deliver our statutory functions. We have authority to incur expenditure on individual items, but this is subject to the limits imposed by the budget allocated by the Scottish Parliament and guidance from Scottish Ministers.

Our Framework Document, refreshed during the year as described below, sets out the funding arrangements agreed between Revenue Scotland and Scottish Ministers and the agreed governance, risk, assurance and monitoring arrangements in place.

Corporate Plan 2024-27

Our fourth Corporate Plan, Corporate Plan 2024-27, was laid in Parliament in March 2024 in accordance with the requirements of the Revenue Scotland and Tax Powers Act 2014. This plan builds on the strong foundations of the past while adapting to a rapidly evolving landscape. It defines our purpose, vision, strategic outcomes and success measures, and sets out our priorities for the corporate plan period which guide our work to collect and manage devolved taxes efficiently and effectively in support of Scotland’s public services.

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Strategic outcomes

Our Corporate Plan 2024-27 introduces four new strategic outcomes focused on Operational Excellence, Investing in our People, Working with Others, and Expanding Horizons. These outcomes shape our priorities over the next two years, ensuring we continue to deliver a trusted, accessible and well-governed tax administration service that supports Scotland’s people, economy and environment. Further details on the strategic outcomes can be found below.

Overview: How we deliver our purpose and measure our success

Our purpose is delivered through the strategic outcomes in our Corporate Plan, with progress tracked using success measures (see below), milestones related to key project objectives, and internal key performance indicators (KPIs).

Our Business Plan details projects and initiatives supporting these outcomes, guiding team and individual goals. This approach ensures a direct connection between individual work goals and the strategic outcomes defined in the Corporate Plan. Our systematic method of managing performance underpins our ability to track and document progress throughout the organisation.

National Performance Framework and National Outcomes

The National Performance Framework (NPF) underpins the Scottish Government’s vision, setting out National Outcomes to measure progress towards its goals. Our Corporate Plan is aligned with these Outcomes, guiding our efforts to support those relevant to Revenue Scotland’s remit.

Following the recent statutory review of the National Outcomes, and the subsequent Scottish Parliament inquiry, the Scottish Government has committed to a period of reform of the NPF to support the development and implementation of a more strategic and impactful framework for Scotland.

The current 11 National Outcomes are still in operation as is the duty (set out in the Community Empowerment (Scotland) Act 2015) on public bodies to have regard to them. By collecting devolved taxes, we indirectly support all National Outcomes, and directly contribute to six specific areas: 

• economy
• environment
• fair work and business
• communities
• human rights
• health

Our approach emphasises investment in our workforce, dedication to equality, diversity, and inclusion, and collaboration with various partners, all underpinned by transparency and accountability.

The delivery of our Corporate Plan 2024-27 involves clearly defined objectives and deliverables, implemented through detailed strategies which include corporate, business and team plans. We track our progress rigorously, with monthly and quarterly performance reviews.

The following table shows which Revenue Scotland strategic outcomes are relevant to the various National Outcomes.

Key Issues and Risks Summary

This corporate risk summary provides an overview of the key risks we have faced, their impact on delivering our strategic outcomes, and emerging risks that may affect our future performance. Further details on these risks are provided in the analysis section.

We have a Risk Management Framework that follows the best practices outlined in the Scottish Public Finance Manual (SPFM) and the Scottish Government’s Risk Management Guidance. This framework guides us in identifying, documenting, and scoring risks. It helps us to assign ownership, determine responses, monitor, and report risk management progress.

Managing and communicating potential threats and opportunities is key for meeting the ambitions in our Corporate Plan. The Audit and Risk Committee, together with staff, undertook a detailed review of our Corporate Risk Register during the year to ensure that our corporate risks accurately reflected the key risks to the achievement of the outcomes we set in our new Corporate Plan for 2024-27.

Before taking any action, we thoroughly assess risks using a combination of the likelihood of the risk occurring and the impact on our activities if it did. The concept of ‘risk appetite’ - the level of risk we are willing to accept to achieve our objectives - helps create a shared understanding across Revenue Scotland and supports confident, risk-based decision-making.

Robust management is in place and our approach to risk management is fully detailed. Full details on all our corporate risks are detailed further in this document. The risks presented below are a summary of our key risks as of 31 March 2025.

Summary of Corporate Risks

Key Projects

Performance Summary

Our Business Plan for 2024-25 outlines key programmes of work, and projects aligned with the first year of our new Corporate Plan. These represent significant investments or carry a high-level of importance, playing a vital role in achieving our strategic outcomes. At the end of this period all of our projects either remain on track for delivery or have been successfully completed.

All of our key projects are linked to our Corporate Plan ambitions. We work closely with our stakeholders as part of the development of our projects (Working with Others), and we ensure our staff receive learning and development opportunities to deliver the projects (Investing in our People). Our key projects also deliver our ambitions of Expanding Horizons, and Operational Excellence, by improving our ways of working, and sharing our learning with others.

Success Measures

The Corporate Plan 2024-27 outlines our key success measures which track our progress and alignment with strategic outcomes. These success measures are detailed in the Performance Analysis section of this Annual Report.

The success measures assess our progress in delivering our four strategic outcomes: Operational Excellence, Investing in our People, Working with Others, and Expanding Horizons. They provide a clear framework for evaluating our effectiveness in areas such as tax collection performance, service user satisfaction, and workforce diversity. These measures demonstrate our commitment to continuous improvement, enhancing digital capabilities, and supporting the development of new and existing taxes in collaboration with stakeholders.

Footnote: 

RAG Status Definitions:

Red: Significant concerns; the measure is off track and unlikely to meet targets without 

immediate intervention. 

Amber: Some concerns; the measure is at risk but can recover with corrective action. 

Green: The measure is on track to achieve its target.

Financial Performance – Resource Accounts 

The figures given below are the final budget (revenue and capital) after adjustment in the Spring Budget review.

In 2024-25 revenue expenditure was £406,000 (5%) less than budget. This underspend was primarily due to delays in filling vacancies across several business areas, as well as a targeted review of discretionary spending and capitalising of bulk laptop purchases. These measures were implemented to support the Scottish Government’s wider programme of savings and efficiency improvements.

£52,000 capital spend variance (4% of the capital budget) is due to the bulk purchase of laptops in-year costing £60,548. This was provided for within the Resource budget, however the bulk purchase of laptops are capitalised as per accounting standards.

Financial Performance - Devolved Taxes Accounts

The LBTT revenue collected is dependent on performance of both the residential and non-residential property markets within Scotland. The SLfT revenue collected is dependent upon categories and tonnage of waste deposited in landfill sites within Scotland. 

Independent forecasts of LBTT and SLfT revenue are published by the Scottish Fiscal Commission (SFC). The SFC publishes forecast evaluation reports comparing outturn figures to Budget Act estimates, detailing the reasons for any differences observed.

The values in the above table are for tax returns and amendments submitted during 2024-25. They are adjusted for the value of LBTT and SLfT returns received during April and May 2025, which relate to the period up to March 2025.

The tax returns submitted during 2024-25 may include adjustments to returns originally submitted in previous financial years.

However, unless these adjustments were received in April or May of the relevant financial period and therefore accrued into the financial statements of that year, these are accounted for in the year of receipt.

A summary of the tax revenue and our resource spend over the period 2019-24 is shown below and this forms part of our Performance Report.

Performance analysis

Introduction

The purpose of the performance analysis section is to provide a detailed analysis of our performance in 2024-25.

At the beginning of 2024-25 we published our new Corporate Plan 2024-27. The Corporate Plan has four strategic outcomes:

• Operational Excellence
• Investing in our People
• Working with Others
• Expanding Horizons

Each of our strategic outcomes are evaluated by corporate success measures. At the beginning of this corporate plan period, we developed a three year business plan to enable us to deliver the strategic outcomes. Sections 3-7, below, discuss our performance in relation to each of the strategic outcomes. Section 8 discusses our wider corporate performance.

Operational Excellence

Introduction

At the heart of Revenue Scotland’s work is our commitment to delivering reliable, efficient, and user-friendly digital tax services that support compliance and trust in the tax system. Our ambition is to be a digital and data-informed organisation with robust systems for both stakeholders and staff. This supports the accurate and efficient collection of tax and ensures high quality user experience.

To achieve this strategic outcome, our Corporate Plan 2024-27 sets out four key priority areas, each one of which is discussed in the remainder of this section: 

Improving the guidance available to taxpayers

Work with taxpayers to improve guidance, webinars, and systems designed to enable taxpayers to comply with their obligations. 

Optimising our digital architecture

Create a single end-to-end digital tax service, which is modular by design to provide resilience and flexibility to make better use of data and administer additional taxes.

Increasing our use of automated processes and reporting

Improve our efficiency and effectiveness of our processes, enhance reporting capability and enable our staff to spend more time on fulfilling work.

Designing user-centric systems

Collaborate with users of our systems to gather insights, ensuring they have an excellent experience as they engage with us and our systems.

Improving the guidance available to taxpayers

We have an ongoing programme to update and improve our guidance pages, and we also regularly review any service user feedback on our website guidance, and take appropriate action where necessary. 

In 2024-25 we made updates to our technical guidance pages, improvements to the worked examples, and the calculators provided on our website. These changes provide additional clarity, explain legislative changes, and reflect decisions arising from Tribunal cases. Examples of these improvements include:

How to claim a repayment of Additional Dwelling Supplement (ADS): We updated our guidance presenting it in clearer, plain English, and to reflect legislative changes. We also created a step-by-step ‘How to’ video to support service users through the process.

Green Freeport Relief: We added new sections to our guidance covering the introduction of Green Freeports LBTT relief and the designation of Green Freeport sites.

SETS and Secure Messaging Support: We revised our help guides for the Scottish Electronic Tax System (SETS) and published a dedicated guidance page for using our Secure Messaging Service (SMS).

We published our Approach to Tax Compliance, setting out the principles which underpin the way we undertake and focus our compliance activities.

Land and Buildings Transaction Tax (LBTT) Lease Improvement Project 

Tenants of non-residential property in Scotland who have paid LBTT on their lease are required to submit further tax returns every three years throughout the duration of their lease in order to achieve the correct tax position should the terms of their lease change. Helping taxpayers to comply with their tax obligations has continued to be priority for Revenue Scotland. 

During 2024-25 we developed a new lease strategy with the overarching aim of raising taxpayer awareness of their obligations and increasing the compliance rates for three-yearly lease reviews. 

The data workstream within the project is currently focused on working with tenants who have a high volume of leases to gain insight and identify opportunities for improvement. We also engaged with key stakeholders to further support our aim of improving return rates by raising awareness of taxpayer obligations. Engagement has included delivering webinars, advertising through social media platforms and utilising business support organisations and local authority websites to share access to the LBTT guidance. We have received positive responses from taxpayers, agents and wider stakeholders who have praised our approach in supporting taxpayers to improve their processes to meet their tax obligations. Relevant stakeholders have also worked with us to post information on their organisations' websites to promote three yearly obligations.

We are the first organisation to gain approval from the newly created Scotland Debt and Fraud Data Sharing Review Board for data sharing under the Digital Economy Act (DEA) 2017. The DEA allows public bodies to share data if it can be used to identify and recover debt owed to the public sector or to combat fraud. 

We identified that Non-Domestic Rates data held by Scottish local authorities could be used to highlight non-compliance with certain lease review return obligations. In 2024 we launched a pilot using the DEA debt provisions to facilitate a data share with three Scottish local authorities:

1. Fife
2. Falkirk
3. Perth & Kinross

If successful, we would seek to reach agreement with other local authorities to extend the pilot. Collaborating with local authorities for this pilot has also led to further discussions, exploring mutual compliance benefits that could be obtained.

To better understand the needs of taxpayers with lease agreements, we have conducted a range of other activities designed to gather valuable user insights. Examples of this are a review of the user journey to identify areas for improvement in our guidance and correspondence. We have also conducted meetings with users to gain feedback on their interactions with us, and to better understand any challenges they have and how we might overcome them. Based on the insights gathered, we have proposed changes to our digital platforms to increase filing accuracy and developed additional communications for our taxpayers and their agents to help to reduce non-compliance.

We have enhanced our approach to communications and engagement by introducing a social media advertising campaign to reach smaller businesses with leases. We have also been expanding our reach by engaging with business support organisations, and worked in partnership with local authorities and Scottish Government to raise awareness of three-yearly lease reviews by adding information and guidance links to their websites. The evidence gathered from the various activities highlighted above has helped to inform the LBTT review.

Optimising our Digital Architecture: the Digital and Data Programme

In 2024-25 we began the implementation of the Digital and Data Strategy, which supports the Corporate Plan 2024-27 to ensure we achieve our digital vision:

The Public Sector Cyber Resilience Framework was published in December 2024 and this programme and strategy follow the best practices noted there including for cyber-security, business continuity planning and in terms of improving our cyber resilience.

To provide appropriate governance and oversight of the delivery of the programme, we have established the Digital Data and Technology Programme Board which includes representatives from Registers of Scotland and Scottish Government. We are grateful to both for their time and insights which have helped to guide our activities.

The Strategy has seven themes, or ‘missions’, to track the progress of delivery:

Mission 1: Building a new digital team

As our digital services mature and we look to make better use of our data and other data sources. We have created a Digital, Data and Technology (DDaT) function as part of Corporate Functions, consisting of the existing Statistics and Management Information team, IT team and the creation of a new Product and Design team. This team has been created to develop our in-house capability in business analysis and user-centred design. This will improve our ability to prioritise enhancements to our digital systems and customer experience.

Mission 2: Developing our digital tax architecture

We have redesigned our continuous improvement programme for the SETS system to ensure we are focusing on thematic strategic improvements which will bring the most value for tax administration and our users. 

Mission 3: Supporting the development of new taxes and Continuous Improvement

The DDaT team has continued to support the New Devolved Taxes programme to implement SAT and SBSL in SETS. In addition, the team continues to build improvements to our current systems through a continuous improvement project.

Mission 4: Building a new data platform

We have worked with colleagues within Scottish Government to specify and design a new data platform to allow us to improve our analytics capability and exploitation of data.

Mission 5: Focusing on data quality and standards

All of the improvements to our digital services are dependent upon having high quality, standardised data. We have put into place a programme to tackle data quality issues, both on new data entry and retrospectively correcting our historical data.

Mission 6: Developing our capability in property and geospatial data

Most of the data we hold has some geographical element to it, whether a residential address or the location of a landfill site, and so we are developing our expertise in using this data. We are working closely with Ordnance Survey to support this capability building, and have set up a special interest group for other Scottish public sector organisations to share knowledge and best practice.

Mission 7: Building our digital and data literacy

Building our digital capability needs to be accompanied by ensuring our staff have the knowledge and confidence to make the best use of data and digital technology. We have begun planning a programme of work for 2025-26 that will align with the Scottish Tax Education Programme (STEP) syllabus and provide expert support to Revenue Scotland staff in using data and digital tools, including the use of AI.

Increasing our use of automated processes and reporting: the Continuous Improvement Project

Over the past year, the DDaT Programme has continued to advance the functionality and performance of our core tax system (SETS) through the Continuous Improvement Project (CIMP). This initiative is central to improving operational efficiency, accuracy, and user experience across the end-to-end tax journey. By addressing pain points and modernising our digital infrastructure, CIMP ensures that SETS remains responsive to the evolving needs of taxpayers, internal users, and legislative demands.

Operational Enhancements

This year we extended the streamlining of our core back-office services through investment in our tax collection system SETS. This capability balances efficiency with human decision making at the appropriate stages.

Using experience gained from the introduction of standardised letters in 2023-24, we established a multi-disciplinary team to ensure internal service users’ needs were met. End users were actively involved in documenting business requirements and conducting user testing. This approach enabled a seamless integration into operational delivery.

In 2024-25 we expanded our range of system generated letters. Data from the tax system is now integrated into letters and financial transactions are provided to Revenue Scotland officers for quality assurance checking. This approach increased the efficiency of decision making and reduced the risk of human error. In May 2024, in response to external stakeholder feedback, we introduced functionality in SETS which automatically issued copies of conveyance and lease penalty notices via Secure Messaging System SMS to authorised agents. 

To help lease taxpayers to avoid incurring penalties during the daily penalty period, we introduced automated generation of correspondence which issues reminders to taxpayers to submit their outstanding three-yearly lease review return.

We also introduced a digital link between SETS and our third-party print/post supplier for selected correspondence. This enhancement delivered efficiency savings by automatically updating SETS. 

During the remainder of our new Corporate Plan period, we will be working on expanding letter functionality to other types of correspondence.

User-Centric Services

Consumer Duty

Revenue Scotland is now subject to the Consumer Duty, which came into effect on 1 April 2024. It requires us, when making decisions of a ‘strategic’ nature about how to exercise our functions, to have regard to the impact of those decisions on consumers in Scotland, and the desirability of reducing harm to them.

To comply with the duty in a proportionate and streamlined way, we developed an Integrated Impact Assessment tool, which brings together the requirements of the Consumer Duty, equalities duties and the Fairer Scotland Duty. This ensures when we are approaching strategic decisions, all these duties are considered early and in the round. It is supported by the roll out of guidance and materials. We intend that this integrated process will enable us to perform these duties in a way that genuinely influences the strategic decisions under consideration. 

Acting on User Research

Putting users at the centre of our services remains a core priority for us. We actively seek and value feedback, and we are committed to delivering a high-quality experience for all users. Over the past financial year, we focused on understanding and improving services where taxpayers interact with us most directly.

One example is our review of the current process for submitting LBTT lease transactions and three-yearly lease reviews. To guide this work, we engaged directly with taxpayers to better understand their experiences and identify opportunities for improvement. These insights shaped a series of planned enhancements, which we have included in our roadmap for 2025-26. This initiative supports our strategic outcome of delivering accessible, transparent, digital services that meet user needs. We also recognise that agents and tax professionals, who frequently submit returns on behalf of taxpayers, are among our most active service users. It’s essential that we continue to meet their needs effectively.

A second example is the introduction of a major change to how we manage correspondence: all tax-related communication with registered SETS users is now delivered through our Secure Messaging Service (SMS) on the SETS portal. To ensure this change delivered value, we conducted targeted user research and worked closely with agents to gather feedback. Based on this, we improved SMS by enhancing search functionality, refining the file upload process, and publishing comprehensive guidance to help users get the most from the service.

We also improved the design and usability of our website by aligning it with the Scottish Government Design System (SGDS). This redesign brought several benefits, including:

• a consistent look and feel across our digital platforms - both revenue.scot and SETS now use the same design approach
• inclusive and accessible layouts that follow best practice design standards
• reusable components that support faster development and ongoing improvements

These changes contribute to our broader commitment under the Consumer Duty obligations to ensure our services are transparent, accessible, and designed to support well-informed decision-making.

Looking ahead, we will deepen our understanding of user needs and behaviours through expanded user research and greater use of behavioural and data insights. This will help us design services which are efficient, intuitive, and meet the evolving expectations of taxpayers, agents, and other stakeholders.

Tax Compliance Activity

Our tax compliance work has three key elements, all of which contribute to our work to deliver user-centric services:

Enabling: We help taxpayers to understand and comply with their tax obligations through the services we provide. This includes the publication of clear, informative guidance; a user-friendly online system; our support desk; providing tax opinions; and engaging with and upskilling stakeholders, for example, by presenting technical webinars. 

Assurance: We use our resources and statutory powers to ensure the tax system is performing as expected and to help taxpayers to get to the right tax position. This includes checking returns to ensure they are complete, accurate, and that the correct amount of tax has been paid; carrying out landfill inspections; sharing intelligence with other tax authorities; and the use of investigatory powers, statutory enquiries and assessments.

Resolution: We seek to resolve disputes and pursue non-compliance by using our powers proportionately and applying penalties where required.

In 2024-25 we published our Approach to Tax Compliance which outlines the concepts underpinning our compliance work. This document sits alongside our Settlement and Litigation Principles which details the way in which we resolve tax disputes. Along with our guidance, these proactively inform taxpayers about our approach to dispute resolution. See below for details of litigation over the year.

We continue to work closely with other UK tax authorities, sharing information, intelligence and knowledge with HMRC and the Welsh Revenue Authority (WRA). We do this through legislative gateways and through our formal Information sharing agreements.

In addition, we regularly discuss areas of potential legislative change in partnership with Scottish Government policy colleagues. We also frequently meet with bodies such as the Association of Tax Technicians (ATT), the Chartered Institute of Taxation (CIOT), the Convention of Scottish Local Authorities (COSLA), the Institute of Chartered Accountants of Scotland (ICAS), and the Law Society of Scotland (LSS), as well as other industry bodies.

Our data-led approach to identifying tax risks helps to ensure that we maximise our compliance resource. This provides us with an excellent level of assurance of the tax system whilst also targeting the most significant risks.

Our compliance activities secured £3m in tax during the 2024-25 fiscal year. This includes both additional tax identified and ‘tax protected’; for example, where repayment claims were declined because they were found to be unwarranted, directly as a result of our compliance efforts.

This figure represents a strong performance, and whilst lower than the results seen in 2022-23 and 2023-24 it is important to recognise that those years saw exceptional figures reported as a consequence of the culmination of a number of long-running, high value disputes, reflecting compliance work that had spanned a number of years.

The figure does not include the impacts of upstream assurance and compliance activity, such as improving guidance or systems to assist taxpayers to comply with their obligations.

Tax Disputes: Reviews and Appeals

Introduction

We aim to minimise tax disputes by providing clear information and guidance to taxpayers, and by having robust decision-making processes in place. In the event of a dispute, a taxpayer may request an internal review of a decision, request or agree to mediation, or appeal a decision to the Tax Chamber of the First-Tier Tribunal for Scotland (FTTS).

Taxpayers and their agents have the right to request us to review any decision which affects whether a person is liable to pay tax, the amount of tax due, the date the tax is due and payable and the imposition of a penalty or interest. An independent review of the decision will be carried out by someone who was not involved in making the decision being reviewed. The Revenue Scotland and Tax Powers Act 2014 (RSTPA) sets out the decisions which are reviewable and appealable. An appeal may be made regardless of whether or not a review has been sought or mediation entered into. The FTTS decides appeals against Revenue Scotland decisions, and the Upper Tribunal for Scotland (UTS) decides appeals on a point of law from decisions of the FTTS.

Reviews

In 2024-25, we received 596 requests for a review of decisions made. Of those concluded, we upheld the original decision in 364 cases. In 136 cases, we overturned the original decision, for example due to new information received from taxpayers during the review. We varied 13 decisions, and the taxpayer withdrew one review. The remaining cases were live as at 31 March 2025.

Appeals

We have collected data on appeals since Revenue Scotland was established in 2015. The data shows consistent trends of higher volumes of LBTT appeals compared to SLfT appeals and of the FTTS upholding our decisions in ADS and penalties appeals.

‘Settled’ covers a range of outcomes including agreement between the parties or withdrawal of the appeal by either Revenue Scotland or the taxpayer. ‘Dismissed’ covers appeals which have been dismissed due to procedural defects e.g. appeals raised in error.

During 2024-25, 29 appeals were initiated in the FTTS, all of which related to LBTT. This is the highest number of appeals initiated in one year. An increase in penalties issued for failure to make an LBTT return for three-yearly lease reviews gave rise to an increase in the number of appeals received. We expect to see a reduction in ADS appeals following legislative changes introduced from 1 April 2024. More information about the changes can be found on our website.

Of those 29 appeals, 23 had been preceded by a review. 24 of them were raised by an unrepresented taxpayer. If requested, we provide guidance to assist taxpayers to understand their obligations.

A taxpayer can opt to have a hearing before the FTTS, either in person or virtually. If they do not want to attend a hearing, then their appeal may be decided on the papers submitted by the parties. Of the appeals received during 2024-25, 11 taxpayers requested hearing. Appeals decided by the FTTS on the papers take an average of 18 weeks to conclude, whilst the average for an appeal involving a hearing is 35 weeks.

During 2024-25, we participated in 8 hearings took place before the FTTS, 1 of which was conducted virtually. We instructed counsel in 3 of these appeals due to the complex nature of the dispute.

The FTTS upheld our original decision in all 12 cases decided in 2024-25. 9 of those appeals had been preceded by a review. We carefully consider our position before entering or continuing litigation, as shown by the 13 appeals settled in 2024-25. 

We received approximately 124,000 returns in 2024-25. When considered in relation to that volume of returns, the above illustrates the very low number of disputes per year. This reflects the support and guidance we provide to taxpayers to help them understand and comply with their obligations. For those taxpayers who dispute our decisions and where it is appropriate to do so, we also proactively share examples of reported FTTS case law on similar grounds, to assist taxpayers to understand the rationale for our decision. It also shows we are prepared to vary our decisions where that is justified and that we litigate responsibly.

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Finance and Human Resources Business Transformation

In 2024-25, the Scottish Government undertook a significant step in its Corporate Transformation journey with the implementation of Oracle Cloud, a modern, integrated Human Resources (HR) and Finance platform. Delivered by the Scottish Government’s Shared Services Programme Team, this initiative replaced multiple legacy systems, consolidating them into a single solution designed to streamline operations, enhance efficiency, and support data-driven decision-making.

The implementation of Oracle Cloud in October 2024 marked a pivotal moment in the Scottish Government’s ambition to become a digitally enabled, collaborative organisation. Developed in close collaboration with colleagues across the wider Scottish Government family, the programme was underpinned by a shared commitment to modernising back-office functions and improving corporate services. The new system provides real-time access to accurate workforce and financial data, enabling better planning, improved user experiences, and more informed outcomes.

A key feature of the transformation was the introduction of professions aligned with the wider Civil Service, supporting improved workforce planning. The Scottish Government identified 21 professions across its main bargaining unit, including Tax, led by 'Revenue Scotland's Head of Tax. Revenue Scotland’s workforce spans nine of these professions, such as HR, Legal, Tax, Statistics, Digital Data and Technology, Operational Delivery, Finance, Communications, and Project Management.

To support this transformation, several people-related policies were also enhanced. These changes reduced reliance on HR back-office functions and increased accountability among staff and line managers through a self-service model. A comprehensive communication and training plan ensured staff were well-prepared and confident in using the new system. The Scottish Government pay award 2023-25 included the reduction in working week from 37 to 35 hours with effect from October 2025. The transformation included a complete overhaul of recruitment processes. Revenue Scotland successfully delivered this significant programme of change with minimal disruption. Encouragingly, a recent pulse survey showed that 86% of respondents reported being able to consistently work a 35-hour week without any negative impact on their workload.

Throughout the transition, regular communications, focus groups, and training resources played a vital role in supporting staff. These resources continue to be available post-implementation, reinforcing the Scottish Government’s commitment to continuous improvement and user support.

Investing in Our People

Introduction

Our success is built on the skills, commitment, and wellbeing of our people. We aim to be a high-performing, inclusive and supportive workplace where individuals feel valued, empowered, and able to thrive. Our ambition is to be known as an employer of choice, where people are trusted, supported to grow and proud to contribute to the delivery of high-quality public services.

To achieve this strategic outcome, we are focusing on four key priority areas:

I. Developing our capabilities: Ensuring all our staff have the right skills to succeed with a focus on leadership skills, deepening tax knowledge, and digital and data literacy.

II. Creating personalised career development plans: Ensuring everyone can succeed in their role and supporting them in their career ambitions. Seeking opportunities for secondments, both outgoing and incoming.

III. Prioritising equalities, diversity and inclusion: Attracting diverse talent into our inclusive organisation, where everyone can bring their whole self to work.

IV. Empowering our people: Giving our staff autonomy, the tools for a healthy work-life balance, being transparent, and showing recognition.

Together, these actions aim to build an engaged, diverse, and skilled workforce capable of adapting to change and continuously improving the way we work. We assess our performance against this strategic outcome using the following Success Measures:

• An annual People Survey score in the top 25% of Civil Service organisations.
• Evidence Revenue Scotland has taken action to expand the diversity of the workforce and Board, to advance equality of opportunity.

The People Strategy is made up of four themes: Leading and Managing Change, Building Capability, Talent Acquisition and Growth and Resilience and Wellbeing. The action plan will seek to deliver the priorities under these pillars to support delivery of the Corporate Plan strategic outcomes under Investing in our People.

People Survey

Our People Survey performance over the past four years has improved every year. Our response rate in 2024-25 was 98%, the second highest across the Civil Service. This high response rate ensures our results are truly representative of our organisation. 

In 2024-25, our People Survey results placed us in the top seven Civil Service organisations across all themes, achieving our aim of ranking within the top 25% across the UK. This reflects high levels of staff engagement and confidence in our leadership. We also strengthened the diversity of our governance by co-opting additional members to our Board committees and sub-committees. In addition, we continued to promote equality of opportunity across our workforce by actively engaging a diverse range of stakeholders in our recruitment campaigns. Our results also rank us second highest in Learning and Development, Inclusion and Fair Treatment, and 15th for engagement.

Revenue Scotland Performance Ranking Across Civil Service

A lower rank indicates better performance relative to the rest of the participating organisations.

We scored 19% on the Proxy Stress Index - the fourth lowest score - which measures factors contributing to workplace stress, including workload demands, control over work, support, relationships, role clarity, and change. A lower score indicates lower stress levels and is therefore desirable.

On the PERMA Index, which assesses positive emotion, engagement, relationships, meaning, and accomplishment, we ranked 11th highest, with a score of 78%, reflecting the extent to which our staff are flourishing at work.

Understanding and maintaining our results remains a priority. We engage staff at all levels to help us understand what is working well, what we need to stop and areas for improvement. This feedback helps us ensure that we continue to focus on the right areas. These include learning and development, team collaboration, workload and resources, employee wellbeing and quality feedback. Actions to support these areas have been integrated into our People Strategy action plan under our four people themes.

Developing our Capabilities (Learning and Development)

Revenue Scotland’s internal Capability and Skills Audit plays a key role in shaping our workforce development. It gathers information from staff about their current knowledge and skills, as well as the core capabilities the organisation needs now and in the future. This data informs our workforce planning and learning and development offer, supporting the delivery of our Corporate Plan. The audit will be conducted annually and outcomes reported to our Staffing and Equalities committee. 

In line with both our People Strategy and Corporate Plans, our priority is to build a capable and diverse workforce that values continuous development. By understanding our organisational strengths and skills gaps, we can provide targeted training and development opportunities, enabling greater workforce flexibility. This also empowers staff to explore and develop the core skills that are essential to Revenue Scotland’s success.

The audit informed our Data and Digital Strategy. Its findings supported our mission to build data literacy, a priority for 2025-26, to establish a common foundation level. The audit identified subject matter experts to support the mission to build our data literacy. The audit also enabled subject matter experts to be identified to support peer learning to coach colleagues and build capabilities. In addition to the audit, we conduct an annual talent assessment. Both tools help inform our succession planning and individual learning and development plans. Our approach to learning and development has supported us to achieve the second highest score for learning and development in the annual Civil Service People survey for the second year running, a significant achievement.

Induction builds the foundations for building our capabilities. Our induction programme captures core learning and job specific learning with employee and line manager monitoring progress to agree successful completion of induction. This programme not only focuses on team learning but wider organisational learning and connecting with organisational purpose. Our Scottish Tax Education Programme (STEP) is the foundation for building our knowledge. This learning is delivered virtually, and this year has evolved to test a blended learning approach supported by action learning sets. One hundred percent of respondents to the evaluation survey reported they had learned something new from the STEP session. And 96% of respondents rating the session 4 or above on a scale of one to five (one being lowest and five highest).

Career Development Plans

The Corporate Plan 2024-27 outlines our ambition to have an informed, highly skilled, and diverse staff and Board, able to perform to the best of their ability, delivering success for the organisation. We will achieve this by ensuring staff have the right skills to thrive, with a focus on leadership development, tax expertise, and data literacy. Strengthening leadership capability remains a priority at all levels. Our leadership development programme brings together staff from higher B Band and C Band, featured training in systems thinking and a deep dive into our 10-year organisational journey to foster shared understanding.

Our weekly leadership meetings include monthly reflection on our contributions to the Corporate Plan 2024-27 strategic outcomes, along with deep dives into team priorities to enhance collaboration and alignment. In preparation for the introduction of new devolved taxes, we conducted an organisational scan to assess our priorities, capabilities, and capacity to deliver on our ambitions.

Leadership capabilities are further enhanced through line manager support from People Services to build capability and confidence to support our staff in line with our people policies. The annual talent assessment, monthly conversations, mid-year and end of year process all feature review of learning and development goals and review of plans to achieve these goals. Investment in learning and development is a priority to ensure we continue to build our professional capabilities. We have supported development of professional qualifications in Digital, Data, Finance, Health and Safety, Project Management, HR, Governance, and Legal.

Increasing our focus on tax development has enabled us to reach out and connect with colleagues across Public Sector to share best practice. This has involved engaging with COSLA, Visit Scotland and local authorities on Visitor Levy. Our guest speaker at the New Year Gathering from Visit Scotland commended our staff on their thinking and support in helping them plan for the collection of the levy. This approach continued in our collaboration with Scottish Government colleagues to share best practices supporting the development of legislation for the SAT. To share knowledge, the New Year Gathering hosted a session on Tax Development, which all attendees reported being either satisfied or very satisfied with. Our Tax Design lead has hosted information sessions with tax colleagues to support preparation for user testing and guidance design.

Prioritising Equality, Diversity, and Inclusion

Our Corporate Plan 2024-27 sets out our commitment to prioritise equalities, diversity and inclusion (EDI) by attracting diverse talent into our inclusive organisation, where everyone can bring their whole self to work. Revenue Scotland were the second highest across the Civil Service in the 2024 People Survey for Inclusion and Fair treatment. This is based on response to the following questions: 

• I am treated with respect by the people I work with
• I am treated fairly at work
• I think my organisation respects individual differences (cultures, working styles, backgrounds, ideas, etc)
• I feel valued for the work I do

Our Equalities Mainstreaming Report, published on 31 March 2024, set our mainstreaming outcomes for 2024-28. Along with our Corporate Plan for 2024-27, these will serve as our guide to ensure that we meet the needs of the people we serve. The mainstreaming outcomes are:

1. Revenue Scotland will actively promote equality, diversity and inclusion in designing and delivering our services.
2. Revenue Scotland will embed a celebratory culture of equality, diversity and inclusion within our organisation, to have a workforce which reflects the people we serve.

We developed an EDI strategy and action plan, both of which were approved by our Staff and Equalities Committee. They were influenced by principles including – providing 

a single vision for an EDI roadmap, high level deliverables, serving and navigating the intersection between the Corporate Plan 2024-27 and Equalities Mainstreaming Report, complementing our People Strategy and keeping a people focus.

The actions for Equalities Mainstreaming Outcome 1 centre around engaging with service users and stakeholders on the accessibility of our services, the design of our products, projects and communications to consider impacts on protected characteristics, and improving our data collection to consider the equalities impact of the devolved taxes. This will involve analysis of the sources of data already available to us and dovetailing into the development of wider plans to expand what can be gathered. Our work in this area is supported by a steering group and overseen by the Staffing and Equalities Committee.

Our Equalities Mainstreaming Outcomes are supported by an Equalities Strategy and Action Plan. As part of this, ensuring we develop inclusive recruitment practice is a priority. Our approach includes use of inclusive language, interview questions issued to candidates 24 hours in advance, and interviews either taking place in our Edinburgh office or via Microsoft Teams. Candidate evaluation feedback tells us 97% of respondents considered having the questions in advance helped improve their performance at interview and 93% of respondents to panel evaluation responded positively when asked whether having the interview questions in advance aided candidates to give a good account of their skills and experiences.

Revenue Scotland introduced the Employee Passport in 2022, and we continue to promote adoption of the passport to support staff and managers. The passport covers adjustments needed for health reasons, caring responsibilities, and personal circumstances to provide reasonable adjustments to enable staff to remain at work.

Recruitment: Board, Co-option, and Workforce

Over the last year we have taken action to strengthen diversity of thought and experience on our Board and its committees. This was informed by our annual Board skills assessment, which identifies any skills gaps and therefore the recruitment process.

We have recruited three new co-opted, non-voting members, to our Board Committees. These appointments will be for an initial period of 18 months running from 3 February 2025. Two of the new members have joined our Audit and Risk Committee and one new member has joined our Staffing and Equalities Committee. Details of the new co-opted members can be found on our website. These new members bring a wealth of expertise and new perspectives to our Board committees and will support our Committee members in providing assurance to our Accountable Officer and our Board.

We are also delighted to have two new Board members appointed through the Public Appointments process: this increases our Board to eight members. These appointments strengthen our Board’s diversity (a commitment by our Chair in our Equalities Mainstreaming Report 2024-2028) and bring additional skills, expertise, and experience to complement those of our existing members. This will support us in setting the strategic direction of the organisation and delivering our Corporate Plan ambitions.

Empowering Our People

Hybrid operating model

Our Hybrid Operating Model was launched in April. This sets out the activities staff are required to attend the office for and the frequency, offering staff flexibility as to when they attend. 96% of staff report that when working from home colleagues are good at keeping in touch formally and informally.

All Staff Gatherings

We bring our staff together in person twice yearly to connect with our organisational objectives and purpose. This is integral to our Hybrid Operating Model.

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The Summer Gathering was themed on our Corporate Plan strategic priorities: Operational Excellence, Investing in our People, Working with others, and Expanding Horizons. We were joined by guests from the Scottish Government, Visit Scotland, and NEC, who shared their insights on how we are delivering against our strategic objectives. We also heard from our Board member Robert MacIntosh, who shared his insights on leading and managing change.

The afternoon sessions were focused on the Investing in our People theme and drew on the outputs from our Capability and Skills audit, covering a range of topics. In one session, we heard from another Board member, Idong Usoro, about our digital future. The energy and engagement throughout the day was testament to our culture. Board members especially enjoyed interacting with our staff throughout the day.

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New Year is a time for reflection and a forward look, and this is no different for us at Revenue Scotland. Approaching the 10th anniversary year of Revenue Scotland, our New Year Gathering offered an opportunity to reflect on our journey over the years, the progress we have made, a look to the coming year and our readiness for delivering two new devolved taxes: SAT and SBSL. The event also provided an opportunity for staff to contribute to the development of our People Strategy. Their input helped shape our vision and priorities for the People Strategy to support the delivery of the Investing in our People priorities in the Corporate Plan 2024-27. This year several new staff joined our organisation bringing many new skills and experience. Maintaining connection as one organisation is key to help us deliver our period of significant change which moves us from delivering efficient collection of two taxes to four taxes. Team building and readiness for change was the theme of the morning.

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Volunteering

Revenue Scotland supports staff to take up to six days special leave each year. In this report period, staff have reported 181 hours volunteering. This ranges from supporting Boards and Committees, Children’s Panels, and local charities. During national volunteering week, our Health and Wellbeing group supported Merry-Go-Round, a community enterprise helping families grow up green. In addition, they supported Empty Kitchens Full Hearts, a charity which seeks to relieve poverty in Edinburgh by providing meals made using surplus food to support people across the city free of charge.

The Health and Wellbeing Group also supported MacMillan Cancer Support by hosting a coffee morning raising £302, and Charity for Civil Servants by hosting Christmas Jumper Day raising £111.

This year we made a pledge as part of Communities Channel Scotland to challenge ourselves to increase the positive impact we make on our local community.

We pledged that we will: 

• proactively support the use of volunteering days by our staff to support the community and charity projects in the areas they live
• support and encourage our staff to organise and engage with charities and support events and fundraising efforts for these
• strengthen our ties with other public sector bodies and networks to raise our awareness of socio-economic issues

Working With Others

Introduction

Working with others through collaboration and partnership is essential to how we continue to deliver our functions and contribute to wider improvements in public service delivery in Scotland. We aim to build on existing strong relationships with national and local partners and create new ones, sharing what we learn from administering devolved taxes, and play an active role in supporting public service reform. This is why in our Corporate Plan 2024-27, under the strategic outcome of Working with Others, we commit to supporting the Public Service Reform agenda to share our experience of efficiently and effectively delivering public services; and, we will establish new connections with others working in new and local existing taxes.

To achieve this strategic outcome, we are focusing on three key areas of work:

1. Sharing learning on devolved taxation: Through building our partnerships and networks we will continue to collaborate and work together on shared goals
2. Playing a ‘sector connector’ role: We will establish new connections, bringing people together, offering new opportunities for collaborative working in tax across the UK and beyond
3. Leading the way in Public Service Reform: We will embrace change, supporting others by sharing our learning and showcasing our digital services and Shared-Service Model.

Together, these actions aim to ensure we remain an agile, engaged and outward-looking public body, contributing our knowledge and insights to support the public body landscape in Scotland, and further afield. We assess our performance against this strategic outcome using the following Success Measures:

• Case studies will provide evidence Revenue Scotland is actively engaging with national and local authorities to share tax knowledge
• Case studies will provide evidence Revenue Scotland is actively engaging with the Scottish Government and other public bodies to support Scotland’s Public Service Reform ambitions

Stakeholder Engagement Plan 

To address the priorities of the Working with Others theme, in 2024-25, we prepared a new stakeholder engagement plan aligned to the Corporate Plan 2024-27. The plan acknowledges that the expertise and responsibility for undertaking engagement remains within the areas of Revenue Scotland where it is performed, and provides support from the Engagement Team to work together with the teams in identifying where gaps and step changes are required. The plan recognises our role as a sector connector, and ensures that we are well positioned to make connections and build networks.

We have delivered a range of tools to support stakeholder engagement, such as standard lines to take for engagement, where a full briefing is not required. Improvements are ongoing in this area, while we finesse the process. Learning from our regular reviews allows us to improve and tailor our approaches to distinct audience groups.

Below are a series of short case studies, which demonstrate how we work with others. These examples also meet a range of our Corporate Plan Outcomes, including Expanding Horizons, however, we are discussing them in this section to highlight how we achieve our ambitions through closely working with others.

Sharing learning on devolved taxation

We worked with SEPA, the Scottish Government, and local authorities to support the transition away from landfill in preparation for the biodegradable municipal waste ban (BMW ban) (see below). We contributed to the design and implementation of new taxes such as the Visitor Levy and SBSL.

We also built new relationships by joining the Institute of Revenues, Ratings and Valuation (IRRV) monthly forums and engaged directly with local authorities on tax-related matters including data sharing, automation, and litigation.

We also held strategic discussions with the Convention of Scottish Local Authorities (COSLA), and the Society of Local Authority Chief Executives (SOLACE) to explore new opportunities.

Biodegradable Municipal Waste Ban

From 1 January 2026, biodegradable municipal waste (BMW) can no longer be accepted for disposal at landfill sites across Scotland. This will significantly reduce the amount of waste that can be sent to landfill, and will heavily impact the industry and the revenues of landfill companies. 

Despite the ban, landfill will still be required and there is a risk that the shrinking industry means that the sites that have the funds or practices to stay open may not offer Scotland as a whole the coverage and capacity for waste that still needs to go to landfill. There is also the risk that sites will close as revenues decrease, which could result in sites abandoned without aftercare and maintenance.

To prepare for this, we have been working closely with SEPA colleagues and Environmental Policy colleagues in Scottish Government. Initially, we coordinated a strategy group considering the future of landfill. During these discussions we were able to identify shared objectives across the organisations and flag up risks and attribute ownership. 

Following these initial discussions, we now meet individually with each organisation to ensure that we continue to understand the shared risks of the ban and are prepared for it, including financial concerns and compliance risks that will be present when the ban is implemented.

We will continue to work with partners to address concerns in waste compliance, specifically working with SEPA, HMRC, the Welsh Revenue Authority (WRA) and the Joint Unit for Waste Crime, as well as other partners.

Scottish Landfill Communities Fund changes

The Scottish Landfill Communities Fund (SLCF) is a tax credit fund that Scottish Landfill Tax (SLfT) operators can contribute to. Currently, operators can contribute up to 5.6% of their SLfT tax liability for each year, and they benefit from a tax credit of 90% of any amount that they contribute. 

SLfT is an environmental tax which aims to encourage the prevention, reuse and recycling of waste by making landfill a relatively expensive option. A long-term trend of decreasing SLfT revenues reflects the success of efforts to encourage diversion of waste from landfill, driven by the SLfT and the introduction of the BMW ban.

However, as the volume of waste disposed of via landfill reduces, so too will operators’ tax liabilities and as a result, contributions that can be made to the fund. This means that from April 2026, the fund will be likely to be running at a deficit and no longer able to sustain itself.

To help manage this transition, we have been working closely with colleagues from the Scottish Government’s Tax Policy team and the SEPA SLCF team, which holds delegated responsibility for monitoring the fund’s compliance. Our collaboration has included supporting drafting the public consultation for the fund, which closed in June 2025. Additionally, we have engaged with the Approved Bodies, organisations that receive contributions from operators, and would be most directly affected should the fund be discontinued.

We will continue to work closely with internal and external stakeholders as decisions on the fund are made following the consultation.

Sharing Learning with National and Local Authorities

Over the course of the last year, we have shared our knowledge of managing self-assessed taxes with Scottish Government, industry and local government in cases where we will not be the collecting agency. An example of this work is the forthcoming Visitor Levy. Since the Visitor Levy (Scotland) Act 2024 was passed, we have continued engaging with stakeholders to provide views on technical tax matters emerging through the design of the levy. We supported the drafting of guidance through our membership on the Visitor Levy Expert Group.

We have also shared our expertise on the management of devolved taxes through specific forums focusing on tax and revenues. This has paved the way for the creation of new working relationships, allowing us to support and learn from others. This work actively contributes to the Public Service Reform agenda and supports our Working with Others strategic outcome to work collaboratively on shared goals.

We continue to work closely with other UK tax authorities, sharing information, intelligence and knowledge through legislative gateways and formal Information Sharing Agreements.

Playing a ‘sector connector’ role

Through focused and thoughtful engagement over the last year, we have forged new connections and helped to establish key connections between other bodies. We have offered opportunities for collaborative working in tax across the UK through the utilisation of existing relationships and bringing people into the same space for engaging discussion on specific items. For example, we identified areas of the Year Four Legislative Programme - Programme for Government 2024-25: Serving Scotland where cross-collaboration could benefit mutual outcomes that may have been complex. We also brought other UK tax authorities into discussions, to bring fresh perspectives on how tricky areas have been navigated in different jurisdictions. By taking forward this collaborative model of engagement, we are helping to break down siloes, ensuring that public service organisations work together effectively to achieve outcomes.

Consultation responses

In 2024-25, we formally responded to four consultations covering a range of issues across both UK and devolved taxation, and wider public service delivery. Our responses were grounded in operational insight and experience, with the aim of supporting the development of effective, efficient and user-centred policy and legislation.

The consultations we formally responded to included:

• raising standards in the tax advice market: strengthening the regulatory framework and improving registration
• a consultation on a Consumer Duty for Public Bodies
• Public Services Reform (Scotland) Act 2010: Extension of part 2 order making powers
• operation of the Public Sector Equality Duty in Scotland

Engagement through consultation is a key mechanism through which we contribute to the wider public sector landscape in Scotland. Our evidence-based submissions offer technical expertise and practical perspectives that help ensure new proposals are deliverable and proportionate, while also protecting the integrity of the tax system.

Our approach to consultation reflects the principles outlined in our Corporate Plan 2024-27. By sharing our knowledge and learning from others, we help to improve outcomes for taxpayers and service users. Our contributions this year have helped deliver our strategic outcomes ‘Working with Others’ and ‘Expanding our Horizons’, ensuring our voice as a high-performing public body continues to inform Scotland’s policy landscape.

Leading the way in Public Service Reform

Public service reform is a national priority, and we are committed to contributing actively to this agenda. Our approach, characterised by digital delivery, strong governance, and a skilled, engaged workforce, demonstrates how public services can be efficient, responsive, and adaptable. Through this we are able to utilise our expertise and capabilities by sharing knowledge and engaging with stakeholders to support improvement across Scotland’s public services.

Over the past year, we have delivered key efficiencies including: 

• automating several standard taxpayer letters, significantly reducing manual processing
• enhancements to our case management system which now enable tracking of tax workloads within SETS, eliminating the need for external tracking tools
• the implementation of our hybrid operational model which enabled a strategic reduction in our physical footprint at Victoria Quay. As a result, accommodation costs decreased significantly, by nearly £100,000, from £155,001 in 2023–24 to £55,275 in 2024–25

In 2024-25, we engaged directly with the Scottish Government, COSLA, SOLACE, and other public bodies to explore opportunities for joint working and mutual learning. We participated in preliminary discussions with the Public Service Reform Unit and other partners to help shape future reform, while continuing to promote our role as a connector across the tax and wider public service landscape. These efforts reflect our commitment to collaboration, innovation, and continuous improvement and we stand ready to contribute our expertise and experience wherever it can add value.

Commissions

In 2024-25 we responded to two significant commissions that supported strategic decision-making and enhanced collaboration across the Scottish public sector.

The first came from the Cabinet Office and involved a Corporate Functions benchmarking exercise. This work aimed to help Scottish public bodies improve the effectiveness and efficiency of their corporate services and was achieved by drawing a comparative analysis between bodies. We were pleased to contribute to this UK-wide initiative, which offers the benefit of expert analysis and provides valuable insights to inform our strategic decisions and workforce planning. By participating, we helped ensure both our organisation and other Scottish public bodies can learn from this newly generated information and make evidence-based decisions to strengthen the delivery of their corporate functions.

The second was from the Minister for Public Finance who requested information to support key portfolio budget decisions in the current challenging financial context. As an efficient public body, costing less than 1% of the revenue we collect to fund Scotland’s public services, we welcomed the opportunity to share our data and information. Our contribution helped identify opportunities and supported a consistent, evidence-based approach to savings across portfolios.

In responding to both commissions we were grateful to contribute new insights and support improvements in public services efficiency.

Scottish Government have subsequently published a Public Service Reform Strategy.

Shared Services

Our Shared Services model is central to how we contribute to public service reform, enabling us to deliver efficient, effective, and collaborative public services. Our model is built around shared systems and outsourced functions, allowing us to operate with a lean structure while maintaining high standards of service and accountability.

In partnership with the Scottish Government and other public bodies, we access a suite of shared services including procurement, HR, finance, estates, and information and communication technology through the SCOTS platform. We draw on Scottish Government for internal audit expertise and statistical analysis resource, and from the Government Legal Service Scotland for legal resource. We also delegate specific functions, such as compliance activity for Scottish Landfill Tax, to SEPA. Our approach not only reduces duplication and cost, but it also supports alignment and consistency across the wider public sector.

Our approach to shared services operates at a consistently low cost of collection - under 1% for nearly £1 billion in annual tax revenues - all of which is transferred to the Scottish Consolidated Fund to support Scotland’s public services. As we take on the administration of new devolved taxes, including SAT and SBSL, we will continue to build on our Shared Services Model, proactively supporting reform through collaboration, digital innovation, and strategic workforce planning.

Expanding Horizons

Introduction

Revenue Scotland is preparing to play a leading role in shaping and delivering new and evolving forms of taxation in Scotland. As our responsibilities expand, we aim to share our operational expertise, deliver new tax services effectively, and use the learnings and insights we’ve acquired from 10 years of administering and managing devolved taxes to help shape the policy and legislative environment in the future.

To achieve this strategic outcome, we are focusing on three key priority areas:

1. Developing and delivering new devolved taxes: We will support the development of SAT and the proposed SBSL. Our delivery programmes will ensure readiness for their introduction.
2. Reviewing devolved taxes legislation: We will work with Scottish Government to review legislation for existing taxes in light of operational experience.
3. Supporting development of local taxes: We will offer our insights on digital services and tax collection and compliance. We will support the development of tax policy and legislation.

Together, these actions aim to ensure we are prepared, adaptable, and capable of delivering change in a way that is sustainable and aligned with our public service values. We assess our performance against this strategic outcome using the following Success Measures:

• Evidence Revenue Scotland has actively worked in partnership with the Scottish Government to develop and deliver new devolved taxes will be reported each year in the Annual Report and Accounts
• Evidence Revenue Scotland has contributed knowledge and supported the development of new and existing local taxes will be reported each year in the Annual Report and Accounts.

In 2024, we contributed views towards the creation of ‘Scotland’s Tax Strategy: Building on our Tax Principles’. We shared our views directly with Scottish Government colleagues through roundtable and bilateral discussions. Various aspects of the published Strategy, including listed actions, will require a shared commitment and have an impact on our future work. An open dialogue is in place to ensure we can assist in this work, providing support around shared areas of interest. An example of this is listed in the section on ‘Evidence and Evaluation’ where a commitment has been made to conduct the first five-year review of LBTT by the end of this Parliament.

Developing and delivering new devolved taxes

In 2024-25, we continued to work closely with the Scottish Government to support the development and delivery of new devolved taxes. We provided technical and operational input throughout the progression of the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill, and contributed to the design of SBSL through joint workstreams and regular engagement with the SBSL Expert Advisory Group. Alongside this, we deepened our working partnership with the Scottish Government to support development and streamlining of legislative change proposals. Our contributions have ensured that operational considerations remain at the heart of tax policy development.

The programme of work established within Revenue Scotland to introduce SAT has now been expanded to also include delivery of SBSL. This work has been grouped within our ‘New Devolved Taxes Programme’, establishing a consistent approach to delivery which seeks to adhere to best practice in programme and project management. 

Our programme has provided a sound footing for making SAT operate successfully, for both Revenue Scotland and for industry.

Our Programme Board includes representation from key areas, both internal to Revenue Scotland and external, that is Scottish Government and COSLA, and provides our Senior Responsible Officer with support and assurance. We have clear governance and escalation routes established to support effective decision making to ensure readiness across the business ahead of the implementation of SAT and SBSL. We have also collaborated closely with colleagues in Scottish Government to inform and support the development of legislation and the design of both taxes, and we are fully engaged with recognised Gateway and Digital Assurance processes.

Scottish Aggregates Tax

SAT is a new devolved tax which will replace the UK Aggregates Levy in Scotland from April 2026. The UK Aggregates Levy is an environmental tax which aims to reduce the extraction of primary aggregate. In general, it applies to the commercial exploitation of primary aggregate – predominantly crushed rock, sand, and gravel – which are used in the construction industry for housebuilding, infrastructure works, landscaping, and environmental protection.

We have continued to collaborate closely with the Scottish Government on the development of the legislation to inform the design of SAT. Engagement with the industry has been critical to informing our understanding of the quarry and aggregates sector. The Scottish Government led Expert Advisory Group, in which we participate, has been key. Development work on the SAT component of SETS was finalised in November 2024, and this has now successfully completed internal testing, with further testing and familiarisation with taxpayers planned throughout 2025. We are also engaging with HMRC to ensure a smooth transition from the UK Aggregates Levy to SAT.

All changes required across Revenue Scotland to support successful implementation of SAT have been identified and detailed planning work has been completed to map out the delivery of these to prepare our staff, taxpayers and broader stakeholders (such as builders merchants and tax professional organisations) for the tax launch.

Scottish Building Safety Levy

SBSL was announced as a measure in the Year Four Legislative Programme - Programme for Government 2024-25. Successful devolution of the scope to introduce a new devolved tax was completed in December 2024. The revenue raised from this new tax will contribute to funding for Scotland’s Cladding Remediation Programme to tackle unsafe cladding on buildings following the Grenfell Tower tragedy. Scottish Government intends to use its powers to tax developers of new build residential properties, equivalent to the UK Government’s Building Safety levy to be introduced in England. We will be responsible for the collection and administration of the tax. The go-live date for SBSL is 1 April 2027. 

We continue to work collaboratively with colleagues from Scottish Government, taking a one team approach to developing our understanding of the policy intent and design of the tax which delivers on these objectives. The SBSL project is in its initial stages, with scoping work and indicative planning having been completed to inform requirements and our timeline. The close working with Scottish Government colleagues has created a positive environment which supports an agile delivery approach as further details are confirmed.

SBSL is a new tax with no existing UK equivalent. We have identified the need for early interaction with the stakeholder group to gain insight into current working practices, provide assurance and prepare taxpayers for the introduction of the tax.

Like SAT, we have played a key role in the relevant Expert Advisory Group which is enabling us to develop understanding of the sector and foster strong working relationships with a range of industry representatives.

Reviewing devolved taxes legislation

We have continued our work on the Legislative Framework Project in earnest over the last 12 months. Delivering and operationalising SAT and SBSL creates a busy period in the current Parliamentary session. In recognition of that and a desire to continue to examine legislative change in respect of the existing devolved taxes, the Scottish Government and Revenue Scotland jointly established a Tax Partnership Board. It aims to prioritise and progress a programme of legislative change relating to the existing devolved taxes up to the end of the current Parliamentary session.

The ongoing programme of work to review and improve existing legislation aims to better deliver outcomes for taxpayers and enhance our core functions. An agreed programme of work is now in place which encompasses the LBTT review, committed to in the Scottish Budget 2025-26, supporting an evaluation of key aspects of the tax legislation. This review also features in Scotland’s Tax Strategy, acknowledging the need to build evaluation across the devolved tax system. This review will support decisions in the Parliamentary session commencing in 2026 on the case for any legislative change identified. This work has been, and continues to be, a large collaborative effort between Scottish Government and Revenue Scotland, highlighting the strong partnership that is laid out in Revenue Scotland’s Framework Document.

Supporting development of Local Taxes

As well as the work on the development of new taxes, as outlined above for SAT and SBSL, we have also supported the policy thinking and development of other taxes in the wider revenue landscape within Scotland. This work has strengthened relationships across Scottish Government, local government and industry representatives. We have successfully supported the development of policy thinking regarding these revenue raising measures by offering insight into the delivery of taxation, bringing this into the policy cycle at an early stage to aid discussions. By bringing in a voice focused on the delivery and operational aspects of tax design, digital services, and administration early, we aim to bridge the gap between policy and implementation.

Examples of this work in practice can be seen with the Visitor Levy, Cruise Ship Levy, and the single-use cup charge. Our work on Visitor Levy involved productive engagement with local authorities, COSLA, and the Digital Office to support secondary legislation and a digital solution. This work also actively supports the public service reform agenda through the identification of shared goals and collaborative working. We will continue to work with key stakeholders, providing a credible and expert voice in collecting and managing taxes, to assist the development of revenue raising measures in Scotland.

We have also remained engaged with Scottish Government colleagues and others on Non-Domestic Rates reform, Air Departure Tax and a potential Carbon Land Tax, building networks and acting as a sector connector.

Wider Corporate Performance

Framework Document

We have worked closely with colleagues in the Scottish Government over the last year to undertake a detailed review of our Framework Document. The document does not confer any legal powers or responsibilities; however, it is a formal document that forms an important part of our governance arrangements. It recognises the independence of Revenue Scotland and sets out the agreement between Scottish Ministers and Revenue Scotland around how we work together to ensure that we can effectively collect and manage the devolved taxes in Scotland. 

The document, which was approved by Ministers in March 2025, has been updated to support closer working between both parties in developing Scotland’s devolved tax system and to recognise our growing maturity as we approach our 10-year anniversary.

It does so through an articulation of shared principles, promoting a shared understanding of roles and responsibilities, and by setting out arrangements for managing areas where the two organisations interact with each other. 

Hybrid Operating Model

Our Hybrid Operating Model continues to harness the benefits of staff flexibility with business needs. While staff have the flexibility of some working from home, office attendance is required for key business activities including new-start induction, regular team meetings, Board and Committee meetings, project collaboration, bi-annual staff conferences and performance review meetings.

Our Model supports our ambitions of being an employer of choice by helping us to attract and retain talent. All our staff have access to our main office in Edinburgh and an office in Glasgow, aligning with our Green Strategy ambitions.

We have continued to deliver optimal business performance, and the results against our performance success measures are testimony to this. Adoption of our Hybrid Operating Model has also helped deliver savings of almost £100,000 during this financial year. This was achieved by substantially reducing the accommodation costs associated with our in-office footprint.

The Model was previously evaluated by external consultants and our internal auditors. Continuing on from their recommendations, we have continued to take an evidence-based approach and evaluate our Model to ensure it continues to meet our evolving needs. We also remain committed to sharing our experience and methodology with other employers.

Environmental Sustainability

At Revenue Scotland, we are committed to supporting Scotland’s net zero ambitions by actively reducing our carbon footprint and improving the sustainability of our operations. Over the year, we have taken significant steps to reduce our environmental impact, this was achieved by closely monitoring working patterns and more efficiently using the office space needed to operate effectively.

In 2024-25 our total reported emissions amounted to 51.52 tCO2e, representing a 5.5% reduction compared to the previous year’s total of 54.5 tCO2e.

We have reduced our emissions by 5.5% as a result of continued adoption of sustainable practices, improved efficiency in our operations and a reduction of our footprint requirements.

Risk Management

Revenue Scotland’s Risk Management Framework aligns with the best practice guidance presented through the Scottish Public Finance Manual (SPFM) and the Scottish Government’s risk management guidance. The Framework sets out the process for identifying and documenting risk, assigning ownership of risk, scoring risk, determining responses to risk and monitoring and reporting on progress in managing risk. 

To achieve our ambitions and deliver the strategic outcomes and objectives set out in our Corporate Plan, it is essential that we understand, manage, and communicate the full range of threats and opportunities that could hinder or enhance our organisation.

We ensure risk is assessed and managed prior to taking action to mitigate it or to take opportunities resulting from it. Explicit reference to ‘risk appetite’ – the agreed amount of risk we are willing to accept in pursuit of our objectives – allows us to adopt a common understanding across our organisation. It also provides a framework for the risk owner and managers to confidently make risk-based decisions.

During the year the Audit and Risk Committee, together with staff, conducted a detailed review of our Corporate Risk Register. This review was undertaken to ensure that our corporate risks accurately aligned with our new Corporate Plan 2024-27 and reflected the key risks to the achievement of the ambitions set out within it. This review also included looking at risk appetite levels. We plan to review the risk appetites for all of our Corporate Risks in detail at the 2025-26 ARC strategy day.

Defining a Corporate Risk

Corporate risks are those that are significant, cross-cutting and of strategic importance that pose a potential threat to an organisation’s operations, financial performance, reputation, or strategic outcomes. These risks may arise from a variety of sources, such as changes to our operating environment, regulatory changes or other unexpected events such as cyber-attacks, natural disasters or pandemics. Corporate risks can have a significant impact on our ability to achieve our goals and objectives, and as such, require the attention of senior management and the Board. While all members of staff have responsibility for managing risks in their areas, each of the corporate risks has one or more named risk owner(s) and a risk manager who, together, are accountable for their management. Our Board retains ultimate responsibility.

Revenue Scotland has managed a range of risks and issues over the last year. Our Board continues to be informed throughout the process, closely scrutinising and monitoring the management of these.

The corporate risks as they stood at 31 March 2025 are set out below. These risks have been actively managed throughout the year by risk managers and risk owners with oversight from the Senior Leadership Team, the ARC and the Board.

Key Issues and Risks

To improve our risk management framework, we continuously review our assurance map as part of our commitment to continuous improvement. During the year this review process identified a number of areas with scope to strengthen controls and enhance risk mitigation. We thoroughly evaluated existing controls across various business functions and strategically enhanced our approach in key areas to ensure comprehensive risk coverage. 

This section discusses our thirteen corporate risks, along with the initiatives undertaken to manage them in 2024-25.

Risk 1: Protecting the Integrity of the Tax System

The devolved taxes are self-assessed, meaning taxpayers calculate for themselves how much tax is due. If we disagree with the amount assessed, or a return has not been submitted, we may make decisions in determining the tax due. Taxpayers can challenge our decision, requesting a review (where the decision is reconsidered by another member of staff) or appeal it to the FTTS.

Litigation carries cost and risk for taxpayers and the public purse; therefore, we strive to minimise the scope for tax disputes to arise. We do so by proactively providing services supporting the taxpayer to pay the right amount of tax at the right time. These include high quality guidance, webinars, the opinion service, support desk, direct contact with caseworkers and upholding our Charter of Values. If a dispute emerges, we strive to find areas of agreement. In instances where agreement cannot be reached litigation may ensue in the FTTS. In that forum we co-operate with the FTTS in fulfilling its overriding objective to deal with cases fairly and justly. We also apply our Settlement and Litigation Principles to guide how we undertake disputes.

In the interest of resolving disputes quickly and efficiently, we are open to settle a dispute by agreement at any point, including during litigation. In 2024-25, we worked collaboratively with taxpayers to reach settlements and the best practicable outcomes whilst still protecting revenue. This approach resulted in 13 appeals settled by the taxpayer. Those 13 cases took an average of 35 days from date of notice of appeal to date the appeal was withdrawn. Disputes can highlight common issues with the legislation.

We support our Scottish Government colleagues where any requirements for legislative change have been identified. Disputes can also indicate where improvements could be made to the tax system. In recognition of this, we routinely reflect on and implement continuous improvement during and on conclusion of disputes. 

Further information on appeals is available within the relevant section of our Annual Report.

Risk 2: Legislative and Policy Change

It is vital we understand the legal framework in which we operate to ensure compliance with requirements and duties. Our staff maintain an overview of legislative developments and requirements relevant to Revenue Scotland. For instance, Corporate Services teams keep up to date with developments in data protection, procurement and equalities legislation. Tax and Legal colleagues stay informed about developments in comparable tax jurisdictions that might inform our approach.

In performing our core functions, we may also identify ways in which legislation could be improved to reduce risks like loss of tax or create a more efficient tax system. We have channels for raising these issues with Scottish Government colleagues.

Regular engagement with all stakeholders, active communications with our key partners, and monitoring issues as they arise ensures our decision makers are presented with the best solutions and have a complete understanding of the impact of changes on tax revenues and our work practices.

In 2024-25, we created a new ‘Head of Tax Development’ role. This is a strategic role to strengthen our ability to contribute to tax policy development within our remit. The Head of Tax Development role is central to ensuring Revenue Scotland can influence and respond effectively to legislative change opportunities, sharing our technical and operational tax expertise. It supports the Senior Leadership Team and the Board in making informed decisions about potential new responsibilities. As our remit evolves, this role will play a critical part in guiding us through change and expanding our position as Scotland’s Tax Authority.

Risk 3: Delivery of New Taxes

The ability to deliver new taxes is essential to our core statutory purpose of protecting and collecting tax revenues. If we fail to successfully deliver new taxes, not only will we fail our core statutory purpose, we won’t collect the forecasted total tax revenues in the Scottish Budget, miss out on potential opportunities and economies of scale that these taxes may present and may suffer significant reputational damage. In 2024-25, we are actively preparing for the introduction of SAT and SBSL.

We have a new devolved taxes programme in place to manage the introduction of both new taxes. Our Senior Leadership Team meetings have been restructured to provide greater strategic focus on the delivery of key projects and programmes. We collaborate closely with Scottish Government around tax design and regularly engage with key stakeholders including Ministers. 

Risk 4: Communications and Stakeholder Engagement

It is essential that stakeholders are well informed about the services we provide. Our Communications Strategy and Engagement Plan is designed to enhance our visibility and assert our presence. This ensures the value we provide is clearly understood and appreciated by both current and potential stakeholders.

To further our outreach and engagement objectives, we have actively participated in a number of high-profile external events during the year.

Our engagement has extended into significant areas of public interest, this included attending the Finance and Public Administration Committee several times during the year. Work in this area has also formed a key strand of our Corporate Plan 2024-27.

Risk 5: Corporate Transformation

To deliver our Corporate Transformation Programme, it is essential that we plan properly to embed new systems, policies and processes. If we don’t, there may be resistance to change, a lack of understanding and buy in from our staff.

In 2024-25, all of our finance and HR systems moved to the Oracle platform.

The implementation of the Oracle Cloud platform is one of the largest transformation projects the Scottish Government has undertaken in years. It has brought our HR, Finance and Procurement data into one integrated solution, delivering a single data source, improved processes, improved controls and greater transparency of data. 

The platform was implemented in the Scottish Government and 32 public sector organisations, including Revenue Scotland in October 2024. A phased approach on the 1st of October saw around 3,000 users begin accessing the first 3 finance modules, with the HR component rolled out to the full customer base (around 20,000 users) across Scottish Government core and 32 public sector bodies on 7 and 8 October. A further rollout on 14 October saw the implementation of additional finance modules. The platform has been built around a suite of best practice processes, adopted from the UK Government Global Design principles (now superseded by NOVA Functional Reference Model) and was implemented in response to the recognition that the previous Finance and People platforms, SEAS and e-HR respectively, were approaching the end of their useful lives and had not kept pace with the scale or functions of the organisation. 

To ensure that the platform continues to meet the ever evolving needs of modern government the Scottish Government has put in place a dedicated management team which will manage and maintain the platform with a process of quarterly updates

We engage regularly with the Scottish Government at all levels. We also participate in the Scottish Government year-end conference, ensuring full collaboration across all required processes and a successful completion of our year-end audit.

Risk 6: Health, Safety, and Wellbeing

Throughout last year we maintained a strong focus on mitigating risks associated with health, safety, and wellbeing. Our commitment to these areas is demonstrated through our regular contact with experts who provide competent advice for both our landfill operations and the other areas of our organisation.

In 2024-25 we implemented proactive measures to anticipate and adapt to new issues that may impact our health, safety, and wellbeing practices – launching our Health and Safety Policy to all staff and introducing a Health and Safety Policy handbook. We have also visited a quarry site as part of preparations for SAT to better understand the required health and safety practices. These steps ensure that we not only comply with current regulations, but we are well-prepared for any future requirements.

We have a number of staff within the organisation who have National Examination Board in Occupational Safety and Health (NEBOSH) Health and Safety Qualifications including our new Risk and Assurance Manager who joined in 2024-25. This gives added assurance that our Health and Safety policies are compliant and helps embed our good Health, Safety and Wellbeing culture.

Our Health and Wellbeing Committee delivered a diverse calendar of events that focused on a broad range of topics including, Stress Awareness month, Learning at Work Week, Volunteering week, Pride, MacMillan coffee morning, preventing back pain and RSI campaign, Christmas Jumper fundraising, and participating in the Kiltwalk. These events not only support health and wellbeing but also support staff engagement, and our resilience.

Risk 7: Staff Capacity and Capability

Building our professional capability is a priority. Staff are supported to undertake professional qualifications, and we continue to build our leadership and line management capability. 

The capability and skills audit, and our talent assessment outcomes inform our succession plan, workforce planning, subsequent resourcing plan, and learning and development offering.

Staff/Line Manager monthly conversations focus on development and priorities. We have extended our end of year performance process to now include our capability and skills audit, and we provide coaching for line managers throughout the employee journey.

Our approach to workforce planning regularly reviews our priorities against our Service Delivery Target Operating Model and succession plan, to ensure we create pipelines for emerging talent. This approach saw our People Survey results rise once again from 71% in 2023 to 73% in 2024 in the Learning and Development theme: second highest across Civil Service.

We continue to support all our staff to build professional skills, knowledge, and capability.

Risk 8: Organisational Culture

Adopting an evidence-based approach to hybrid working has enabled us to develop clear and robust Hybrid Working Principles, where staff are empowered to work flexibly, and encouraged to connect with purpose. Compliance is monitored regularly and all staff have a key work objective to comply with the hybrid operating unless by exception though an employee passport.

Our approach to communication and engagement is transparent and collaborative. 

Our staff support the design and delivery of our weekly All Staff meeting, and our in-person conferences. Both occasions are integral to maintaining connection as one organisation which is aligned to our purpose and objectives.

During 2024-25 we adopted a 35-hour working week, which encourages a better work/life balance for our staff. The principles of the 35-hour working week will be regularly reviewed to ensure a balanced workload for all our staff.

Risk 9: Budgeting and Finance

We need to be prepared for any changes to our funding or investment priorities and manage our expenditure appropriately. Failure to do so may mean we can’t target our investment to deliver our Corporate Plan priorities and effectively deliver all our functions.

We have strict financial controls in place. Our performance and budgets are scrutinised by our Senior Leadership Team. We proactively engage with Scottish Government, maintaining effective relationships and providing regular outturns. Our capital spending is overseen by our Data and Digital Programme Board who consider return on investment and benefits realisation for all major projects and which are also subject to external assurance through the gateway review process.

We are subject to annual audits by Audit Scotland and benefit from Internal Audit Services provided by the Scottish Government’s Directorate of Internal Audit and Assurance. 

We have budget monitoring processes in place and our Programme Management Team oversee the delivery of all major projects to ensure they remain within budget. Long term financial planning gives us an indication of future requirements.

Risk 10: Data Optimisation

If we fail to exploit the potential in our data, we miss the opportunity to improve the design of our services, improve our decision making and deliver operational efficiencies.

Our Statistics and Management Information teams work with teams across Revenue Scotland and with external bodies such as the Welsh Revenue Authority and Registers of Scotland. This gives vital understanding of the analytical needs of various teams and improves the evidence for decision making.

We have a Digital and Data Strategy in place overseen by the Data Digital Programme Board. Also, our Lease Review Projects Board has a workstream on using data more effectively to understand issues around lease reviews.

Risk 11: Information and Cyber Security

Cyber security continues to be a critical area of focus as the threat landscape continues to evolve. This year we participated in a Cyber exercise hosted by the Scottish Cyber Coordination Centre. This focused on a Cyber ransomware attack on our systems.

This exercise, along with benchmarking activities conducted during the year, has helped us to identify areas for improvement which have been progressed in advance of a further similar exercise this winter.

We work closely with our range of suppliers to ensure that their cyber security arrangements continue to be appropriate. Our ongoing efforts in this area are crucial in protecting the data we hold and maintaining the trust of our stakeholders.

We adhere to the Public Sector Cyber Resilience Framework to ensure we have robust cyber security measures in place.

Risk 12: Digital Systems Performance and Adaptability

We have developed a Data and Digital Strategy which will help us to meet our future Digital Data needs. With our digitalfirst approach at the forefront of our decision-making, in 2024-25 we have successfully implemented a number of digital initiatives to enhance the efficiency of our operations, whilst reducing risk. We have made many user-centric improvements, designed to streamline processes, and ensure user-friendliness and accessibility for both agents and taxpayers. 

We have expanded the Digital, Data and Technology function. A new team has been created to cover business analysis and service design, so we are able to focus on improving our requirements gathering and customer experience. A principal business analyst and user researcher have been recruited to fill the team.

In addition we have recruited a senior data engineer to help us build our cloud analytics platform, to ensure we can derive greater value from our data. Recruitment will continue in 2025.

Risk 13: Resilience

We need to have effective business continuity planning in place to enable us to continue to operate and carry out our key functions.

We are part of the Scottish Government Business Continuity Network which gives invaluable insight into what is happening with regards to Business Continuity in other departments and agencies. 

We engage regularly with our key suppliers to ensure cohesive business continuity strategies and preparedness.

We carry out annual Business Continuity Exercises. Whilst this year’s exercise focused on our Cyber systems, it informed our overall Business Continuity, particularly when reviewing and updating our Business Continuity Plan for 2025.

We make use of telephony software to enable us to contact all of our staff in the event of an incident. Using a secure external file storage system allows us to access key documents during an incident meaning our Incident Management Team can plan accordingly and keep our essential services running even if our main IT services fail.

Values and Behaviours

Our staff are civil servants who adhere to the Civil Service Code. Staff are expected to carry out their duties with a commitment to the civil service core values of integrity, honesty, objectivity and impartiality. Staff must not misuse their official position to further their private interest or those of others or accept gifts, hospitality or other benefits from anyone which might reasonably be seen to compromise their personal judgement or integrity. All staff undertake annual mandatory training on counter fraud, bribery and corruption to remind them of their responsibilities in this area.

Records Management and General Data Protection Regulation

Throughout 2024-25, we have remained committed to improving our performance in respect of information governance and assurance. Our Information Management Plan, which we put in place during 2023, continues to provide a solid strategic foundation for the direction of the organisation and we are continuing to work through and build upon this.

As well as the network of Information Management Support Officers (IMSOs), which we established in the previous period, we have now revitalised our Information Governance Structure and conducted a thorough review of our Information Asset Register. The Information Governance Group (IGG) we set up in 2024 has also provided us with a valuable forum for Information Governance issues including the introduction of the new SAT and the implementation of new processes and systems. The IGG has also explored new opportunities, including options offered by the Digital Economy Act 2017, which led to a pilot of data sharing with local authorities.

We continue to engage with our external partners in the National Records of Scotland (NRS) and National Library of Scotland (NLS). We have again participated in the Progress Update Review (PUR) with the NRS, through which our efforts to meet our statutory obligations are annually assessed. We have also ensured this year that our key documents, from the inception of Revenue Scotland in 2015, have now been provided to the NLS, which is one of the UK’s libraries of legal deposit. 

Education and training also remain at the forefront of our activities. We continue to run a mandatory course for colleagues which covers key issues relating to information management and assurance. Ad hoc sessions are also run internally for our teams which have covered topics such as data incident reporting. During the last period, we launched our network of Information Management Support Officers (IMSOs) who have continued to champion information governance throughout the organisation. Our website now contains a video explaining our approach to privacy and our Privacy Notice. We continue to interact regularly with taxpayers, responding to data protection Subject Access Requests, Freedom of Information requests and constituency enquiries from MSPs and MPs.

Data Protection Incidents and Losses

Protecting sensitive information that taxpayers entrust us with is vital to their confidence in us as a public body. Accordingly, data protection issues are raised regularly in team meetings and through training. During the year, we recorded the following data incidents and data losses:

Each incident and loss is thoroughly investigated internally, with the majority found to be only of a minor nature which do not require reporting to the Information Commissioner’s Office (ICO). One incident during the period was self-reported to ICO, which was assessed as having a low impact and being limited in scale. This resulted in a review of our ways of working and a change to our systems. ICO took no further action.

Freedom of Information and Environmental Information Regulations Requests

During the course of the period, Revenue Scotland received and processed the following FOI and EIR requests:

One request was not fully answered within the statutory timescale but was given an initial partial response by the deadline. It was then fully answered following a Public Interest Test on the remaining material being released.

Whistleblowing Report

Revenue Scotland is a ‘prescribed person’ under the Public Interest Disclosure Act 1998. The Act provides protection for employees who pass on information concerning wrongdoing in certain circumstances. The protection only applies where the person who makes the disclosure reasonably believes:

1. That they are acting in the public interest, which means that protection is not normally given for personal grievances; and
2. That the disclosure is about one of the following:

• Criminal offences (this includes financial improprieties, such as fraud)
• Failure to comply with duties set out in law
• Miscarriages of justice;
• Endangering someone’s health and safety
• Damage to the environment
• Covering up wrongdoing in any of the above categories

The Prescribed Persons (Reports on Disclosures of Information) Regulations 2017 came into force on 1 April 2017. Prescribed persons are required to report annually on whistleblowing disclosures made to them.

Reporting

We have a whistleblowing policy and procedure in place to ensure issues can be raised. During the reporting periods 1 April 2024 to 31 March 2025 and 1 April 2023 to 31 March 2024 we received no whistleblowing disclosures.

No investigations were carried out within this reporting period. 

Actions

No actions were required during this period. 

Improvement objectives

No improvement objectives were required during this period. The next review of our policy will be March 2026.

Elaine Lorimer – Chief Executive of Revenue Scotland and Accountable Officer

02 October 2025