Compensation call for troops forced to pay new Nat tax
‘Punishing brave personnel’
THE Defence Secretary has been urged to compensate up to 14,000 Armed Forces personnel who will be forced to pay higher income tax rates as a result of the SNP Budget.
Scottish Conservative MPs Kirstene Hair and Douglas Ross have written to Gavin Williamson, raising concerns that those stationed in Scotland will pay more tax than their comrades south of the Border.
This follows the SNP’s decision to raise taxes for Scots earning more than £33,000 a year. Some 14,000 service personnel will be affected.
Miss Hair and Mr Ross have urged Mr Williamson to ‘clear up’ the mess created by the Scottish Government.
Miss Hair said: ‘I am extremely concerned about the impact this ill-considered decision will have on Armed Forces personnel across Scotland, including those based in my constituency of Angus.
‘Those earning £33,000 do not deserve this economic hit, especially our hard-working Armed Forces staff who selflessly sacrifice so much for our United Kingdom.
‘The SNP are punishing these brave personnel simply because they are based in Scotland.
‘We are asking the Defence Secretary and UK Government to reach out a hand of support, to help clear up this mess caused by the Scottish Government and offer to equalise the take-home pay packets of those stationed in Scotland.’
Mr Ross represents Moray, which is home to 39 Engineer Regiment at Kinloss and RAF Lossiemouth.
He said: ‘It is a huge shame this political decision by the SNP is going to hit the pockets of so many who do such a specialised job. It is hugely unfair.
‘I hope we can secure positive action from the Defence Secretary and UK Government to help protect these jobs and ensure people are not turned off from working in Scotland’s fantastic Armed Forces bases because of the SNP’s short-sightedness.’
Last night, a Ministry of Defence spokesman said it would continue to monitor the situation in Scotland as the Budget process plays out.
A Scottish Government spokesman said: ‘We are fully committed to supporting the Armed Forces community.
‘The definition of who is a Scottish taxpayer is set out in
legislation and is a matter for HMRC.’
Armed Forces personnel who have their main home in Scotland are defined as Scottish taxpayers. But those who were resident north of the Border before being deployed abroad are also regarded as Scottish taxpayers.
Two days before Christmas, the Mail reported senior MoD figures were understood to be concerned Armed Forces staff in Scotland will receive smaller pay packets than those in the rest of the UK and were considering compensation.
At the time, West Aberdeenshire and Kincardine Tory MP Andrew Bowie said: ‘It’s becoming clear the SNP has charged ahead with their Nat tax without thinking through the consequences.
‘The fact Armed Force personnel are facing a “Scottish surcharge” simply for living north of the Border will strike most Scots as deeply unfair.’
‘There is no good reason why anyone should be forced to pay more in income tax than people elsewhere in the UK.
‘It shouldn’t be up to the MoD to have to compensate those being forced to pay more. The SNP need to think again and stop their plans to hike taxes.’