Why the Disparity when it comes to the Part-Time Reserve?
19 October 2011
Following an answer from the Finance Minister, asking for explanation as to how beneficiaries of the Civil Service Equal Pay settlement benefitted from payments free of tax and NIC, whereas such was deducted from each payment under the Part-Time Reserve Gratuity, TUV Leader Jim Allister has expressed amazement at the disparity in approach.
"Mr Wilson has claimed that the Equal Pay beneficiaries were exempted from Tax and NIC - which DFP paid - in order "to avoid the very significant administrative effort of around 16,000 individual tax calculations." Yet, when it came to the Part-Time Reserve Gratuity, affecting 7,000, there was no such administrative difficulty and they were hit for both tax and national insurance. Why did Part-Time Reservists not get the same consideration? They deserved no less."
This is the Question asked and Answer given:-
To ask the Minister of Finance and Personnel (i) why; and (ii) how it was possible to make lump sum payments, net of tax and National Insurance contributions, to the beneficiaries of the Civil Service Equal Pay settlement, but not to the beneficiaries of the Part-Time Reserve Gratuity Scheme.
The NICS Equal Pay lump sum payments were paid to staff net of tax and National Insurance contributions to avoid the very significant administrative effort of around 16,000 individual tax calculations. A central agreement was reached with HM Revenue and Customs who analysed a sample of NICS staff and determined an average taxation figure which was then paid to HMRC based on the lump sum payments made.
The Part-Time Reserve Gratuity Scheme is a matter for the Department of Justice.
