Military personnel liable for Scottish income tax will this month receive extra money from the MoD, according to an announcement.
The Ministry of Defence say that over 7000 soldiers, sailors and airmen and women who were adversely affected by the Scottish Government’s tax hikes last year will receive extra remuneration in their pay slip at the end of this month.
“The payments total £4.1million with an average payment of £580. This is a one-off yearly payment, which is taxable, but with the net effect of raising the take-home pay of service personnel to the level set in the rest of the UK.
Last year the MoD announced that to counter tax hikes by the Scottish Government, the MoD would provide financial mitigation to ensure that thousands of personnel would not be negatively affected.”
Defence Secretary Penny Mordaunt said:
“Scotland plays a vital role in the defence of the UK, attracting thousands of personnel with the type of skills we want to retain in our military.
It is right that we do everything we can to look after our people and their families. This extra cash will help ensure that Scotland continues to be an attractive place to serve.”
The MoD say that the move came after concerns that income tax changes could result in Scotland becoming a less attractive place for military personnel to be posted. They also say that it will also help with recruitment and retention, particularly as many of those affected personnel in Scotland have specialist skills, such as aircraft and submarine engineers.