The SNP could be facing a hefty tax bill after taking cash from their councillors’ salaries.
Eight of their former councillors have demanded a refund after having a portion of their wages deducted by the party to go towards local campaigning. The group later formed new party - Progressive Change North Lanarkshire - and argued that £1600 they paid towards the SNP’s campaigning fund should be given back as they are no longer members.
The council’s tax advisers have now looked at the deductions and found the whole scheme wasn’t compliant with tax rules. Now the local authority is trying to work out who has to repay the tax man - the SNP, the councillors or the council.
Meanwhile the eight councillors said they have been ignored by the SNP’s group leader Tracey Carragher over requests to get their deducted wages back.
Progressive Change NL secretary councillor Gerry Brennan said: “We have simply asked for the levy deductions to be returned to us as we can no longer seek re election as SNP councillors in 2027. Cllr Carragher has refused this refund request even after being made aware of the potential tax and penalty implications of holding personal monies for a benefit the SNP Group can longer deliver.
“We have also approached NLC Finance Dept who has intimated they too are now in discussions with their own tax advisers over the way the scheme is administered. All of this financial disorder is not a great public image for the SNP to be portraying locally, especially given the ongoing financial issues and investigations the SNP as a whole are facing currently.”
A spokeswoman for North Lanarkshire council said: “The council has received advice from its tax advisors which confirms that the tax treatment of salary deductions for some councillors was incorrect. This was a historical error on the council’s part and we continue to liaise with the tax advisors to ensure compliance with reporting requirements to HMRC.
“The council will make contact directly with councillors affected once the reporting requirements to HMRC have been met and a decision has been made about resolving any outstanding tax liability.”
A spokeswoman for Carragher said: “Any questions on payroll deductions by North Lanarkshire Council will be dealt with by the Finance Department and not the SNP Group.”
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