Ceesnan People and companies in Scotland pay their taxes, customs & excise, Vat, oil revenues, etc. to the UK Treasury in the same way and at the same rates as everyone else in the UK. An agreed sum is then returned to the Scottish Government under the Barnett formula to fund the Health Service, Education, Police etc. - all the things that the Scottish Parliament has devolved control of. If the England and Wales budget for, say, Education is cut or raised the same % cut or rise is applied to the sum passed back to the SG. The remainder of the tax take from Scotland goes into the UK pot to pay for UK wide expenditure e.g. Defence, the Monarchy, Social Security and Pensions, Embassies,the payments to the EU, etc, etc. Some of the UK POT is also used to pay for projects e.g. high speed rail, airports, which benefit England (particularly the SE)only because England does nor have a separate POT of its own, whereas the new Forth Crossing has been funded entirely from Scotland's budget (as was the Commonwealth Games) which is a bone of contention. Under the system no money is transferred from England to Scotland (or vice versa. All revenues raised throughout the UK go to the UK Treasury.
People elsewhere complain that they are subsidising services in Scotland e.g. free prescriptions but this is not actually the case. When the SG examined prescription charges they found that the cost of administering the system, with the elderly, chronically ill, pregnant mothers and children all entitled to free scripts and each one having to be checked to ensure it was valid, meant that abolishing charges for the few who had to pay was almost 'cost neutral' as the administrative saving was equal to the revenue previously raised from the charges. To a lesser extent the same applies to Free University Tuition because there is a huge saving on the admin required to re-coup Tuition Fees from students and the SG has chosen to allocate available education funding differently to England (as have Wales & NI).
If Scotland decides to break free from Westminster Control, then all Scottish revenue would be retained in Scotland and the SG would be able to pay its dues directly to the EU instead of paying its fair share of EU dues via the UK Treasury as it has done until now.
