Question reference: S5W-33977
- Asked by: Alex Cole-Hamilton, MSP for Edinburgh Western, Scottish Liberal Democrats
- Date lodged: 22 January 2021
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Current status: Answered by Jeane Freeman on 11 February 2021
Question
To ask the Scottish Government what tax guidelines it will issue regarding the £500 "thank you" payment for NHS and social care staff, in light of this sum appearing as a bonus in pay information.
Answer
Regrettably, Her Majesty's Revenue and Customs (HMRC) has confirmed that these payments made to employees are regarded as earnings and will be liable for tax, national insurance contributions and student loan repayments, where appropriate. The Scottish Government cannot give tax guidance as this matter is reserved for HMRC. The Cabinet Secretary for Health and Sport is writing to UK Government to ask that this payment be exempt from tax and benefits calculations.