Edward Mountain MSP has said “faulty advice and slow decision making on taxing compensation should have been spotted when the Healing Process started on 26 May 2020”. This would have meant that bullying victims were not left dismayed and out of pocket as their compensation payments were subjected to tax.
Edward Mountain MSP has welcomed a HMRC ruling which now means compensation payments to NHS Highland bullying victims will not be subject to tax, unless the payments are related to earnings from current employment.
Last year it emerged that NHS Highland bulling victims’ compensation payments were paid through payroll and all were therefore subject to tax treatment.
Since then Edward Mountain MSP has relentlessly lobbied the First Minister, the Cabinet Secretary for Health and NHS Highland to ensure the tax deducted from the compensation payments was overturned.
NHS Highland confirmed in December 2020 that they had written to HMRC to seek a ruling on the tax treatment of compensation payments.
Edward Mountain MSP commented:
“The faulty advice and slow decision making on taxing compensation should have been spotted when the Healing Process started on 26 May 2020. It should not have relied on my prompting for NHS Highland to finally write to HMRC on the 14 December 2020 to review the issue.
“I therefore welcome HMRC’s confirmation that NHS Highland made a mistake by subjecting compensation payments to tax treatment.
“The independent advice that I received prior to NHS Highland’s letter to HMRC confirmed that this would be the outcome, which is why I have pushed so hard to support bullying victims.
“This tax fiasco could have been avoided from the beginning had NHS Highland raised this issue with HMRC earlier. This would have spared bullying victims from a lot of additional pain, hurt and financial worries. I understand Shepherd and Wedderburn have also confirmed this to participants of the Healing process too.
“It is now vital that NHS Highland respects HMRC’s ruling and ensures victims now receive the correct amount of compensation they are owed and deserve as soon as possible.”
“This is a big victory for bullying victims and I am delighted that common sense has prevailed.”
