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Anger at NHS tax apology with claims that NHS Highland only reversed its decision to tax Healing Process payments made to victims of bullying after the intervention of Inverness MP Drew Hendry and MSPs Edward Mountain and David Stewart


By Ian Duncan

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Raigmore Hospital in Inverness.
Raigmore Hospital in Inverness.

Concerns that payments made under NHS Highland’s Healing Process scheme would be taxed in error were ignored when they were first raised, it has been claimed.

After weeks of uncertainty, HMRC agreed earlier this month that most payments made to victims of bullying within NHS Highland would not be subject to tax as the payments were made for harm caused, and not related to earnings.

Speaking at the time of the decision, NHS Highland chief executive Pam Dudek apologised for the upset and harm caused by the initial confusion over the issue.

However former staff member David Hughes (52), from Kinmylies, said the issue had been raised by victims previously – but it was only the intervention of Inverness MP Drew Hendry and MSPs Edward Mountain and David Stewart that persuaded the health board to take action and ask the tax authorities for a review.

Mr Hughes worked with NHS Highland’s learning disabilities team until December 2019, when he decided to leave.

He reported allegations of bullying in 2016 but said he was dissatisfied with the way his case had been handled and quit his post because of the effect the situation had on his mental health.

He said: “I am one of the estimated 200 people who have so far accessed the Healing Process.

“I find any apologies and comments that NHS Highland acted in ‘good faith’ disingenuous, as concerns about the administration of the Healing Process payments were raised, by myself and others, before they went ahead.”

The Healing Process is an independent service developed by NHS Highland in partnership with whistle blowers, colleagues and other stakeholders, and supported with Scottish Government funding.

Its stated aim is to help individuals who have suffered from historical bullying and harassment while working for the board.

Mr Hughes said he had spoken with a number of former colleagues who felt the same way as he did about the whole situation over the handling of compensation.

He said there had been severe consequences faced by those who had to endure bullying within the organisation and the Healing Process needed to be reviewed by an independent body outside of NHS Highland.

An NHS Highland spokeswoman would not comment on Mr Hughes’s allegation but said 23 people who had previously received payouts administered through the health board’s payroll system would now automatically receive refunds as applicable, correcting the tax and national insurance position as required, by February 26.

There was no need for them to take any action themselves, she said.

Related article: Staff who feel they suffered bullying or harassment while working for NHS Highland are invited to take part in online session ahead of Healing Process deadline

Related article: Victims of NHS Highland bullying question the programme designed to deliver compensation amid issues such as long waits for payments

Related article: NHS Highland still waiting for HMRC ruling on bullying compensation payments

Related article: NHS Highland bullying victims will not be taxed on compensation payments


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