06/06/2011

Taxing Time For RUC Reservists

Imminent payments of service gratuities to former part-time members of the Royal Ulster Constabulary Reserve (RUCR) are to be taxed.

Despite previous assurances they would not be cut, Ross Hussey, who is Chairman of the RUC GC Part Time Officers Welfare Group has confirmed that the payments part time members will be receiving from HM Government in respect of the gratuity scheme will be subject to tax and National Insurance.

The West Tyrone Ulster Unionist Assemblyman commented: "We have been fighting for years for some form of recognition of the service of the part time RUC Reserve.

"Following a long campaign a settlement from then Prime Minister, Gordon Brown in order to bring the Hillsborough Agreement and the devolution of policing and justice into being," he said.

"A figure of £20,000,000 was agreed - the Prime Minister's letter was quite specific that he was prepared to set aside this money to fund the scheme.

"At no time was it suggested that tax and national insurance payments would be deducted.

"We have always believed our case to be a special case. The final settlement figure when the tax and national insurance liabilities are calculated is likely to be just over £11,000,000." he fumed.

"The tax, national insurance and the administration fee will eat up approximately £9,000,000 of the available fund.

"I am extremely disappointed at HM Government for their inability to recognise the nature of this payment and recognise the contribution to society made by the part time Reserve," he continued.

"My committee and I have fought a long and hard campaign for this payment as recognition of the failure to recognise the contribution the RUC Reserve have made to society and for the failure of the Police Authority to ensure that part time officers were paid a rate equivalent to their regular colleagues.

"Over 6,000 applications have been submitted to the fund and it is hoped payments will be made before the end of June," he concluded.

Last November, the Stormont Justice Minister David Ford published the details of the scheme for the police Part Time Reserve who said that 'ring-fenced funding' of £20m has been provided by HM Treasury for the administration and payment.

As a call was made to exclude all such payments from tax or national insurance deductions, Mr Ford said the scheme would be open to former members of the Royal Ulster Constabulary (George Cross) Part Time Reserve as well as current or past members of the Police Service of Northern Ireland (PSNI) Part Time Reserve (known as Police Officer Part Time) who joined before the end of October 2009.

The DUP Leader and Stormont First Minister, Peter Robinson welcomed the announcement and said: "This represents the outworking of a deal the DUP reached with the previous Government.

"Our police officers who served in the Part Time Reserve deserve recognition for their sacrifice and dedication to duty down through the years. I am glad that a scheme has now been devised and the processing of applications can commence," he said.

"However, we have been making representations to the Treasury regarding the payments being subject to Tax and National Insurance.

"Whilst other similar payments to the RUC and the RIR were granted special status it would be very disappointing if the Conservative-Lib coalition did not make similar provision for the Part Time Reserve," he said.

See: 'No Tax' Call On Police Reserve Gratuity

(BMcC/KMcA)

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