Threshold Allowance Awards

HC Deb 20 November 2001 vol 375 cc264-5W

Mrs. Calton

To ask the Secretary of State for Education and Skills what action she will take to ensure that those teachers who crossed the payment threshold as a result of threshold allowance awards in the financial year 2001–02 will pay the same level of taxation on their increased salary as those who passed the payment threshold in the previous financial year. [16420]

Mr. Timms

Because the original timetable for threshold assessment was delayed by the judicial review initiated by the National Union of Teachers, some teachers did not receive their threshold pay rise before April 2001. These teachers will therefore receive both their 2000–01 threshold back pay and their 2001–02 threshold pay in the current financial year. In most cases this should not affect their tax position. However a minority might have to pay some higher rate tax as a result. For employees covered by PAYE income is taxable when it is received. This is a fundamental principle of the tax system that cannot be changed for teachers who might find themselves in this position. But we will do all we can to ensure that teachers who apply for threshold assessment this year receive their pay rise by March 2002.