Highland MSP Edward Mountain calls for update on NHS bullying compensation after payouts taxed
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Highland MSP Edward Mountain has called on NHS Highland for an urgent update on the compensation payments for victims of bullying after some lost their benefits and had to pay a large amount tax on the payouts.
Mr Mountain insists that the taxing of compensation payments is “resolvable” following advice he has received from qualified accountants.
The health board confirmed that it had written to HMRC in December to seek a ruling on the tax treatment of compensation payments but last week director of finance David Garden confirmed that the health board were awaiting a ruling.
Last year, it emerged that NHS Highland bullying victims’ compensation payments were paid through payroll and were therefore subject to tax, there were also fears that confidentiality could also be compromised.
Edward Mountain MSP, who has repeatedly raised the issue of bullying compensation, said: “NHS Highland should have had a response from HMRC now concerning the compensation payments.
“I believe the issue of taxing compensation payments was a mistake but it is resolvable based on advice given to me by qualified accountants.
“The health board needs to do everything in its power to ensure victims receive the full untaxed amount of compensation they are owed and deserve.
“I will continue to assist NHS Highland and the Scottish Government to make sure that everyone involved in the Healing Process receives a fair settlement.
“Victims of bullying are owed an urgent solution.”
At this week’s board meeting HR director Fiona Hogg delivered a report on the issue, insisting that alternative methods of paying compensation are not available.
“The process does not fit with any of the existing dispensations or exemptions that are available, due to the unique nature of the Healing Process," she said.
“It is acknowledged that the co-production process did not explicitly discuss or explore this element, which would have more quickly highlighted the different assumptions around this and allowed them to be addressed before payments began to be made.
“We are working with the co-production group on this matter and as soon as a response is received from HMRC, we will reconvene with them to discuss the outcome and agree how best to implement and communicate."
She added that is some people who have not received payments yet and it turns out they do not have to pay tax and national insurance then those victims who have already paid that will be able to claim it back.
Ms Hogg said: “In the interim, those who have already received payments have been assured that in the event a different treatment is agreed, they will be able to recover any overpaid tax and national insurance.
“Those who are awaiting payment have been given the option to await the outcome or to proceed with payment.”
