Scottish Government answers questions on Healing Process compensation being taxed

Following on from the information released yesterday that NHS Highland had contacted HMRC about the taxation of compensation payments through the Healing Process, Health Secretary, Jeane Freeman, answered two of my parliamentary questions today. See below.

SCOTTISH PARLIAMENT

WRITTEN ANSWER

22 December 2020(Holding Reply Issued 21 December 2020)

Index Heading: Health and Social Care

David Stewart (Highlands and Islands) (Scottish Labour): To ask the Scottish Government what assessment it has made of The Healing Process, the initiative set up in response to bullying and harassment at NHS Highland, in light of reported complaints regarding compensation payments being taxed at source.

S5W-33872

Jeane Freeman: We are in regular contact with the NHS Highland and have had received positive feedback about the process itself. We are aware of the concerns about tax deductions and the board are addressing the concerns raised by actively pursuing these directly with HMRC to reaffirm the position and to explore if there is any dispensation available in respect of the compensation payments. Without this they cannot legally waive tax or NI contributions.

SCOTTISH PARLIAMENT

WRITTEN ANSWER

22 December 2020(Holding Reply Issued 21 December 2020)

Index Heading: Health and Social Care

David Stewart (Highlands and Islands) (Scottish Labour): To ask the Scottish Government what discussions it has had with (a) NHS Highland and (b) HMRC regarding compensation payments for people who have been bullied being tax free.

S5W-33873

Jeane Freeman: Given our ongoing conversations with NHS Highland that have provided assurances that NHS Highland are directly pursuing the matter with HMRC, we await HMRC’s decision to inform further actions.