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Net Pay Deduction (Clawback) – Tax Relief

By DPF Admin2nd September 2014August 6th, 2019Area Updates, Circulars, Latest News, Northern Updates, Southern Updates

NET PAY DEDUCTION (CLAWBACK) – TAX RELIEF

We have been notified that some members have contacted their local Tax office and detailed their understanding of the NPD, resulting in being informed that they are eligible for tax relief on this deduction as it is money they never receive.

This is unfortunately incorrect and although what HMRC have told them is correct in most circumstances, in this case it is not, as the NPD is adjusted for tax at source.  This is why Sergeants pay more NPD than Inspectors, as they are on a lower tax level for basic pay.

We fully appreciate the angst that this deduction causes and have been trying to address this for some years, most recently (the last 5 years) through the TACOS review, but at this time it is still extant as the Department has consistently failed to provide us with any formal position.

We did try to separate out the NPD, from the main TACOS review, when the pension contributions altered, but the Department refused to negotiate on this separately, despite their position in relation to Drug and Alcohol testing and Fitness.  We are currently taking legal advice on this.

As such, until it is addressed formally we would encourage officers not to make individual arrangements with HMRC as they will discover that, once identified, the government will seek to recover any money paid as we are NOT entitled to tax relief on the NPD. Those members who receive payments will have to reimburse the Tax office. This has happened previously.

As soon as the Department proffers an option on the TACOS we will inform all of our members immediately.

Eamon Keating

National Chairman

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