Commenting on the EIS statement about an “Unfair ‘Tax on Teachers’” a COSLA Spokesperson stated:
“Taxation of pay and the regulations that govern it are set by HMRC at a UK wide level. The teaching unions were informed by COSLA during pay negotiations in early 2023 that if the negotiation was concluded after the pay cut-off dates for making a payment in March 2023 backpay would be taxed in the tax year 2023/24. Nonetheless the unions chose to prolong the negotiations in the hope of obtaining a better pay settlement, which they indeed secured.
“Payment of wages and taxation are local matters for individual Scottish Councils as separate employers. Each of our member councils has its own unique payroll systems. Following the agreement of the 2022-2024 pay settlement on 15th March 2023 some councils were unable to pay the uplift or backpay before the end of the tax year. Councils did not benefit financially by doing this – taxation goes directly to national Government. We understand from briefings by the affected councils that taxation of pay was handled correctly and in-line with HMRC guidance.”