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Friday, 10 July 2020

MoD to give Scottish troops permanent tax refund of up to £2200

MILITARY staff are to be given a permanent income tax repayment if they are based in Scotland.


The Ministry of Defence has announced that the current arrangement, where military personnel are reimbursed for the additional income tax they pay if based in Scotland, will be made permanent.


It will see more than 7,000 serving personnel earning £28,443 or more given an average of £850 a year indefinitely.


Actual payments to troops who pay income tax in Scotland, regardless of where they are serving, will vary between £12 and £2200 with the latest payments being made retrospectively in June 2021.


The mitigation measures were brought in two years ago as concerns were raised about the higher rate of income tax in Scotland deterring troops from being based there.


Minister of State for Defence Baroness Goldie said: "Our Armed Forces serve the whole of the UK, so it is only right that they are treated equally and fairly wherever they are based.
"We want to reassure our brave troops that they won’t be penalised for simply doing their duty by having to pay higher taxes in a certain part of the UK and they will be properly compensated in their pay slips each year."


Secretary of State for Scotland Alister Jack MP said Westminster was "protecting" servicemen and women from the Scottish Government's taxes.


He said "The UK’s Armed Forces make a huge contribution to Scottish communities and our economy. I welcome the UK Government decision to permanently protect them from the Scottish Government’s decision to make Scotland the highest taxed part of the UK.

"The professionalism, dedication and bravery of our servicemen and women can be seen throughout Scotland, the whole of the UK and across the globe, not least through their tireless work to support the UK-wide effort to combat the coronavirus pandemic."

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