Annual Reports and Accounts 2021-22 - Resource Accounts

View Annual Reports and Accounts 2021-22 - Resource Accounts.

The report gives an outline of our key business activities and performance over the past financial year.

Accountability Report

Corporate Governance Report 

The Directors’ Report 

Revenue Scotland Board 2021-22 In line with paragraph 1 of Schedule 1 to the RSTPA, the Scottish Ministers are responsible for appointing between five and nine individuals to be members of the Revenue Scotland Board. One individual is appointed by Ministers as Chair. 

Ministers determine the period and terms of appointment of Board members and may re-appoint individuals who already are, or have been on the Board, subject to evidence of effective performance and to their continuing to have the skills, knowledge and experience required on the Board at the time of reappointment.

Appointments are made following a public appointments exercise regulated by the Commissioner for Ethical Standards in Public Life in Scotland. 

Board Members 2021-22


Dr Keith Nicholson

Chair – appointment

concluded 31 July 2021

Dr Nicholson is an internationally recognised scientist and award-winning company director with more than 30 years’ experience in statistical analysis and data modelling. He runs an independent consultancy providing strategic advisory services. His specialist background is in transactional websites, cyber security and technology.



Aidan O’Carroll

Chair – appointed

1 August 2021

Aidan O’Carroll is a former senior partner at EY, one of the world’s largest professional services firms, which he left in July 2020

after 35 years. Formerly Head of Tax for EY in the UK, Aidan has advised both local and global companies across a wide spectrum of tax and business issues around the world. He is currently Scottish Chair of Institute of Directors and has a number of Non-Executive Director roles in organisations based in the UK. He has considerable experience in dealing with regulatory matters in both emerging and developed markets; he is also a regular contributor and speaker at business conferences.


Lynn Bradley

Chair of the Audit and Risk Committee (until 31 December 2021)

Board and committee appointment concluded 30 June 2022

Lynn Bradley is an accountant with more than 30 years’ experience in the Scottish public and private sectors. Previous roles include Director of Corporate Programmes and Performance at Audit Scotland and Chair of CIPFA Scotland. She currently lectures in the Adam Smith Business School at the University of Glasgow and is a member of the Institute of Chartered Accountants of Scotland (ICAS) Audit and Assurance panel. She is also a trustee of Cash for Kids (Radio Clyde).



John Whiting CBE

Member of the Staffing and Equalities Committee

Board and committee appointment concluded 30 June 2022

John Whiting was a non-executive director of HMRC until September 2019; he remains a director of the Taxation Disciplinary Board; until March 2017, he was Tax Director of the UK’s Office of Tax Simplification (OTS). Other previous roles include Tax Policy Director of the Chartered Institute of Taxation, many years as a tax partner with PricewaterhouseCoopers and membership of the First-Tier Tax Tribunal. 



Jean Lindsay

Chair of the Staffing and Equalities Committee 

Jean Lindsay was previously the Director of Human Resources at the Forestry Commission. She is a Chartered Fellow of the Institute of Personnel and Development (FCIPD) and has experience in leadership, strategic people management, change management and corporate governance in the public sector. She is also a member of the Board of Crown Estate Scotland. 


Martin McEwen

Member of the Audit and Risk Committee (Chair from 1 January 2022) 

Martin McEwen is a Chartered Accountant and Tax Advisor. He is the Head of Tax at SSE plc and a member of their Finance Leadership Team. He joined the company in 2008 after a number of years at PwC. He is a regular speaker on tax transparency and responsible corporate tax behaviour. He has sat on both the Scottish Taxes and the Corporate Tax Committees at ICAS. 




Simon Cunningham

Member of the Audit and Risk Committee

Simon Cunningham is an experienced risk, audit and governance specialist and Chartered Accountant with audit and risk experience at Scott-Moncrieff, Aegon and McInroy & Wood. He is also a member of the ARC at the Scottish Courts and Tribunals Service, a member of the Board of Directors of the Free Church of Scotland Pension Scheme Trustees Ltd, and was a member of the Board of Compass Christian Centre Ltd until April 2022. 




Rt Hon Ken Macintosh

Member of the Staffing and Equality Committee – appointed 1 June 2022

Ken Macintosh was the Presiding Officerof the Scottish Parliament until stepping down from elected politics in 2021.

He began his working life with the BBC, serving as a senior producer and broadcast journalist on a range of news and current affairs programmes. He was elected to the first Scottish Parliament in 1999 and held a number of front bench roles before being chosen as Speaker in 2016. Ken is a member of the Privy Council as well as a Trustee of several charities.



Robert MacIntosh

Member of the Audit and Risk Committee – appointed 1 June 2022

Robert MacIntosh is Professor of Strategic Management and Pro Vice Chancellor for Business and Law at Northumbria University. He has a PhD in engineering and his work focuses on strategy and change with senior leadership teams. He has worked with over 100 organisations and has significant experience as a chair and trustee. He is a Fellow of the Institution for Engineering and Technology, the Academy of Social Sciences and the British Academy of Management. He is currently the chair of the Chartered Association of Business Schools and was formerly the chair of the social care charity Turning Point Scotland.


Idong Usoro

Member of the Staffing and Equalities Committee – appointed 1 June 2022

Idong Usoro has over 10 years of designing and implementing digital transformations, security strategies, policy, enterprise architecture functions, and technical solutions at executive level. This has spanned working in Europe and North America in enterprise solutions, consultancy and IT leadership roles with central, local government, universities and multinational companies. His research work has engaged

both private and public organisations, innovation agencies that including UKRI/ Innovate UK, Cancer Research UK, European innovation/research institutes and the European Commission. He currently serves as an Executive Board Trustee with the Abbeyfield Society and works as a technical consultant to private technology organisations in the immersive solutions, construction, legal, fintech and life sciences sectors.

Senior Leadership Team 2021-22 

Elaine Lorimer – Chief Executive 

Elaine Lorimer joined Revenue Scotland as its Chief Executive in March 2016. She is an experienced Chief Executive who has more than 20 years, leadership experience working at senior management and board level in the civil service and, prior to that, in local government in Scotland. She is a Scottish solicitor and public finance accountant. 

Michael Paterson – Head of Tax 

Michael Paterson joined Revenue Scotland in March 2019 and has lead responsibility for the administration and compliance of the devolved taxes, ensuring they are collected and administered efficiently and effectively. Michael has extensive knowledge and operational experience of UK taxes, particularly those dealing with international matters, resulting from 

30 years as a senior tax professional with HMRC. His wide-ranging and senior tax roles have been in areas including technical, policy, investigations and management. 

Neil Ferguson – Head of Corporate Functions 

Neil Ferguson joined Revenue Scotland in January 2016 and has worked on the introduction of the Additional Dwelling Supplement, led the Air Departure Tax Programme and the Corporate Plan 2021-24. He previously worked on the devolved taxes legislation until 2015, on the Referendum Bill and the introduction of the Home Report which transformed the approach to buying and selling homes in Scotland. 

Mairi Gibson – Head of Legal Services 

Mairi Gibson joined Revenue Scotland in February 2020. She has been a government lawyer since 1998. Over the years she has been seconded to various posts within the Government Legal Service for Scotland including the Scottish Government Legal Directorate, Scottish Parliament and the Office of the Advocate General. 

Statement of the Accountable Officer’s responsibilities 

Under section 19(4) of the Public Finance and Accountability (Scotland) Act 2000, Scottish Ministers have directed Revenue Scotland to prepare for each financial year a statement of accounts in the form and on the basis set out in the Accounts Direction. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of Revenue Scotland and of its income and expenditure, Statement of Financial Position and cash flows for the financial year. 

In preparing the accounts, the Accountable Officer is required to comply with the requirements of the Government Financial Reporting Manual (FReM) and in particular to: 

  • observe the Accounts Direction issued by Scottish Ministers, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis 

  • make judgements and estimates on a reasonable basis 

  • state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the financial statements 

  • prepare the financial statements on a going concern basis 

  • confirm that the Annual Report and Accounts as a whole is fair, balanced and understandable and take personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced and understandable. 

The Permanent Secretary of the Scottish Government (SG), who is the Principal Accountable Officer for the Scottish Administration has designated, in accordance with sections 14 and 15 of the Public Finance and Accountability (Scotland) Act 2000, the Chief Executive of Revenue Scotland as Accountable Officer for Revenue Scotland. 

The responsibilities of an Accountable Officer, including responsibility for the propriety and regularity of the public finances for which they are answerable, for keeping proper records and for safeguarding the Revenue Scotland’s assets, are set out in the Scottish Public Finance Manual

The Accountable Officer may consult with the SG Chief Financial Officer (CFO) on any aspects of the duties applying to Accountable Officers in the Scottish Administration. The Accountable Officer must consult the CFO on any action which they consider is inconsistent with their duties on financial, regulatory or propriety grounds, and specifically where they seek written authority from the Scottish Ministers or a direction from the Board of Revenue Scotland. In practice, the Chief Executive will delegate authority widely to other employees of Revenue Scotland but cannot, on that account, disclaim responsibility. The Chief Executive is responsible for informing the Principal Accountable Officer about any complaints about Revenue Scotland accepted by the Scottish Public Services Ombudsman (SPSO) for investigation and about the response to any subsequent recommendations from the SPSO. 

As the Accountable Officer, I have taken all the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that Revenue Scotland’s auditors are aware of that information. So far as I am aware, there is no relevant audit information of which the auditors are unaware. 

I confirm that this Annual Report and Accounts, taken as a whole, is fair, balanced and understandable, and I take personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced and understandable. 

Governance Statement 

In the paragraphs below, I report on the governance arrangements in place within Revenue Scotland. 

Governance Framework 

Revenue Scotland is responsible for the administration and collection of Scotland’s wholly devolved taxes. The relevant powers and duties of Revenue Scotland, and of the Scottish Ministers are set out in the Revenue Scotland and Tax Powers Act 2014. 

Scottish Ministers are responsible for appointing the Board of Revenue Scotland following a public appointment exercise, regulated by the Commissioner for Ethical Standards in Public Life in Scotland. 

Ministers must not direct, or otherwise seek to control Revenue Scotland in the exercise of its functions but they may give guidance. This guidance must be published and laid before the Scottish Parliament unless Ministers consider that to do so would prejudice the effective exercise by Revenue Scotland of its functions. Scottish Ministers are responsible for setting rates, bands and thresholds relating to the devolved taxes, subject to the approval of the Scottish Parliament. 

The Board of Revenue Scotland is collectively responsible for the leadership and direction of the organisation and for ensuring that it carries out its statutory functions effectively and efficiently. It may delegate any of its functions to an individual Board member, a committee of the Board, the Chief Executive, or any other staff member, but it will retain its responsibility for carrying out its function. 

As the Chief Executive of Revenue Scotland, I am employed by, and accountable to, the Board of Revenue Scotland for the day- to-day running of the organisation and its operational performance. In this role I seek assurance that appropriate controls are in place across the organisation, and in respect of the partners whom we rely on to support us in delivering our objectives, and I can confirm that these have been in operation during 2021-22 and to the date of signing these accounts. 

I am supported by the Senior Leadership Team (SLT), who oversee the day-to-day business of Revenue Scotland, with each member taking responsibility for a specific area. The SLT is made up of the Chief Executive, the Head of Tax, the Head of Corporate Functions and the Head of Legal Services. 

Operation of the Board and committees 

The Board is responsible for the functions and powers of Revenue Scotland and delegates authority to staff through 

a Scheme of Internal Delegation. The Board sets the strategic direction for the organisation, oversees Revenue Scotland’s work and monitors performance including the design and operation of risk and governance frameworks. They do this through scrutiny and, where appropriate, approval of: 

  • corporate plans and business plans 

  • key strategies and policies 

  • regular reports, including reports relating to risk management, performance, tax compliance, business continuity, staff, health and safety, and changes in the devolved taxes 

  • scrutiny of the Annual Reports and Accounts 

  • reports from the Audit and Risk and Staffing and Equalities Committees 

  • strategic engagement with key partners and customers. 

I can report that during 2021-22 the Board met on eight occasions including two strategy meetings (2020-21: eight). During this time the Board scrutinised and considered a number of specific matters including: 

  • decisions on LBTT and SLfT cases, including delegation of any necessary decisions on LBTT compliance cases, where the amount exceeded the delegated limits under the Scheme of Internal Delegation, to the Chief Executive 

  • oversight of litigation cases and the implications for the organisation following the outcome 

  • strategic oversight of draft Tax Settlement and Litigation Principles 

  • approving the Corporate Plan 2021-24 and recommending its submission to Scottish Ministers for approval in accordance with the requirements set out in the Revenue Scotland and Tax Powers Act 

  • strategic oversight of the Future’s Programme to establish a new way of working and piloting a return to the office in light of the experience of working remotely as a result of COVID-19.

Audit and Risk Committee 

The purpose of the Audit and Risk Committee is to support the Board and Accountable Officer by reviewing the comprehensiveness, reliability and integrity of the assurances produced in support of the financial statements. The terms of reference of the committee are published on Revenue Scotland’s website within the Board’s standing orders

The committee fulfils its role through: 

  • scrutiny of risk management arrangements 

  • regular liaison with internal and external audit and scrutiny of their plans and reports 

  • considering and monitoring of responses to recommendations from internal and external auditors and other bodies 

  • review of the certificates of assurance produced by management as part of the financial reporting process and the Chief Executive’s governance statement, and 

  • overseeing the financial reporting process. 

Members of the committee during 2021-22 were Lynn Bradley (Chair until 31 December 2021 and member until June 2022), Martin McEwen (Chair from 1 January 2022), Simon Cunningham and John Whiting (until June 2021). Robert MacIntosh joined this committee in 2022-23. 

The committee is also attended by the Chief Executive, Head of Corporate Functions, Head of Legal Services, Head of Tax, Head of Governance, Chief Accountant and representatives of internal and external audit as well as other staff as required. 

I can report that during 2021-22 the committee met five times (2020-21: five). 

The committee reviewed its effectiveness using the checklist set out in the Scottish Government’s Audit Committee Handbook and found no issues of concern which could affect its normal function. 

Staff and Equalities Committee 

The Staffing and Equalities Committee’s primary purpose is to provide assurance to the Revenue Scotland Board on the establishment and maintenance of an effective framework and systems on matters of strategic people issues including workforce planning, staff welfare, performance management, learning and development, health and safety and equality and diversity. The terms of reference for the committee are published on Revenue Scotland’s website within the Board’s standing orders

The committee comprised two Board members during 2021-22; Jean Lindsay (Chair) and John Whiting (until 30 June 2022). Idong Usoro and Ken Macintosh joined the committee in 2022-23, bringing the membership to three. Staff attendees comprise the Chief Executive, Head of Corporate Functions, Head of Legal Services, Head of Tax, Head of People Services and Head of Governance. Further staff members attend as required. 

I can report that during 2021-22 the committee met three times (2020-21: three) and engaged in a number of relevant matters including supporting the development and scrutiny of: 

  • People Strategy and subsequent action plan 

  • workforce planning 

  • health, safety and wellbeing 

  • equality and diversity. 

Assurances provided to the Chief Executive 

I have received written assurances from members of my Heads of Service who have responsibility for the operation and effectiveness of internal controls within the Tax, Legal and Corporate Functions teams. No significant matters were identified through this process. 

The 2020-21 report highlighted the work that was being undertaken to embed our equalities policy and practice throughout the organisation. These assurances from my Heads of Service note the progress that has been made in this important area over the last year and I look forward to further progress being made over the next year to achieve our objective of embedding consideration of equality and diversity as part of our strategic and operational decision-making. 

I have received assurance from the Accountable Officer of the Scottish Environment Protection Agency (SEPA) in respect of the statutory functions delegated to them by Revenue Scotland. No significant issues were raised with me as part of this process. 

Last year only limited assurance could be provided on the effectiveness of shared data controls, and the impact to SEPA (as regulator) of the Scottish Landfill Communities Fund (SLCF), following the cyber-attack on them in December 2020. I am pleased to report that no further issues of concern have been raised in this regard and that full assurance has been provided. 

For those services for which Revenue Scotland receives from the Scottish Government, I have received assurance from the Scottish Government’s Chief Financial Officer in respect of financial systems, the Scottish Government’s Director for People in respect of Human Resources (HR) services and payroll systems shared with Revenue Scotland and from the Scottish Government’s Director of Digital, in respect of digital corporate services shared with Revenue Scotland. No significant issues were raised with me as part of these. 

In conclusion, I can confirm that, based on the aforementioned written assurances received, there were no significant control weaknesses identified in the period under review. 

Report on personal data incidents

Revenue Scotland manages, maintains and protects all information according to the requirements of relevant legislation, its own information policies and best practice. 

Revenue Scotland has an Information Assurance governance structure which prioritises and manages information risks. 

The governance structure: 

  • protects the organisation, its staff and our customers from information risks where the likelihood of occurrence and the consequences are significant 

  • ensures adherence with statutory duties and 

  • assists in safeguarding Revenue Scotland’s information assets. 

Revenue Scotland has a Senior Information Risk Owner (SIRO) and a number of Information Asset Owners (IAOs), who provide assurance to the SIRO that proper controls are in place. The SIRO role is to ensure information security policies and procedures are fit for purpose and are reviewed and implemented across all of Revenue Scotland’s business functions. 

The IAOs are tasked with ensuring compliance with statutory duties, knowing what information assets they ‘own’ and what information they handle, along with the relevant security requirements, sensitivity, importance and protocols for sharing of information assets. 

During the course of the year, there were five issues relating to minor data losses (mainly by email) which were reported and dealt with internally. The losses were resolved quickly and mitigations put in place. None of the losses met the threshold of being reportable to the Information Commissioner’s Office. There were no security incidents involving any physical losses such as paper files or laptops.

Parliamentary scrutiny 

As a non-ministerial office, Revenue Scotland is accountable to the Scottish Parliament and, as such, can be called to appear before parliamentary committees to provide updates on operational matters, give evidence on tax related matters or provide written statements. 

Revenue Scotland’s Corporate Plan, supporting legislation and this Annual Report are published documents. The Corporate Plan 2021-24, on which this document reports, was approved by Scottish Ministers and laid before the Scottish Parliament in November 2021 and this report will be laid before Parliament in November 2022. 

Corporate plans, all annual reports and accounts and minutes of Revenue Scotland Board meetings are available on our website

Internal Audit 

Revenue Scotland’s internal audit service is provided by the Scottish Government’s 

Directorate for Internal Audit and Assurance (DIAA), who produce an annual audit plan. 

The Audit and Risk Committee reviewed and advised the Board and Accountable Officer on the audit plan. Regular updates on progress against the audit plan are presented by DIAA to the Audit and Risk Committee’s meetings. 

During the year, DIAA completed audits on the following: 

  • Review of debt management arrangements 

  • Review of capability and capacity. 

The audit of Revenue Scotland’s debt management arrangements received a ‘substantial’ assurance rating, demonstrating the risk, governance and control processes to be effective in the supporting the delivery of objectives in this area. 

An assurance rating at the upper-end of ‘reasonable’ was awarded in respect of the audit of capability and capacity. 

Management recognised the need to take further action to manage resourcing 

challenges and work is underway to build in resilience and succession planning for key roles. Revenue Scotland has plans to consider how best to measure effectiveness of available capacity to identify efficiencies to help address capacity challenges. 

Follow-up audits were completed on: 

  • 2020-21 Governance and Compliance Review 

  • Review of Operational Decisions Made as a Result of COVID-19 2020-21. 

The overall annual assessment of Revenue Scotland’s internal controls provided by DIAA is ‘substantial assurance’ for the second year running. This is a significant achievement and means that DIAA continues to view Revenue Scotland’s risk, governance and control procedures to be effective in supporting the delivery of its objectives. Any exposure to potential weakness is low and the materiality of any consequent risk is considered to be negligible. The Audit and Risk Committee members are delighted with the assurance assessment awarded and are committed to working with the Senior Leadership Team to ensure that this is maintained in future. 

DIAA noted robust controls over the process. They welcomed the strong ‘tone from the top’ and a culture of seeking opportunities for further improvement, in both services provided to the taxpayer and in the organisation’s internal processes. Reviewers noted that those involved in the process were proactive in seeking continuous improvement, regularly suggesting potential areas where processes could be further enhanced. 

DIAA did not identify any issues in 2021-22 as a result of the Scottish Environment Protection Agency information loss due to a cyber-attack in December 2020, where data 

relating to Scottish Landfill Communities Fund (SLCF) was lost, restricting Revenue Scotland’s ability to report on SLCF in last year’s annual report. As a result of this, Revenue Scotland’s approach to cyber controls will be considered as part of the review of the planned review of hybrid working taking place in 2022-23 and continues to remain a high priority for Revenue Scotland. 

The Audit and Risk Committee views the assessment as a fair reflection of Revenue Scotland’s position based on the evidence reviewed by DIAA. 

External Audit 

External Audit is provided by Audit Scotland. Mark Taylor, Audit Director is appointed under the Public Finance and Accountability (Scotland) Act 2000 to carry out the external audit of Revenue Scotland and the devolved taxes. During the year, the Audit and Risk Committee scrutinised Audit Scotland’s audit plan and received regular updates from them. The Independent Auditor’s Report can be found on page 74. 

As part of the 2020-21 audit undertaken by Audit Scotland, five matters were highlighted for attention, namely:




Action taken 

Working papers 

The audit could be delayed and the opinion impacted 

Management continued to review and improve audit working papers for 2021-22 

Payables controls 

Devolved tax payables balance could be overstated 

Additional functionality was introduced into the tax system which has led to a decrease in the payables balance 

ADS repayments 

The risk-based methodology does not target the highest areas of risk 

ADS cases are being assessed for risk prior to repayment 

Compliance activity 

Compliance work is not effective 

Compliance plans continue to appropriately address risks. 


Contracts may not be managed effectively 

Work commenced on addressing procurement risks in 2021-22 and will continue in 2022-23

Audit Scotland has reviewed these during their audit of 2021-22 and reported its conclusions in its Annual Audit Report 2021-22. Audit Scotland did not find any significant weaknesses in internal controls which require to be reported during its interim audit.

Assessment of corporate governance

Revenue Scotland has developed a system of internal controls and policies which have been designed to safeguard its assets, data and ensure the reliability of financial records in relation to operational and tax duties. 

I have ensured that these controls have been subject to review by management on a regular basis. They also undergo formal review by both Internal and External Audit, whose reports are made available to the Audit and Risk Committee. I have assessed our corporate governance arrangements and confirm that they comply with generally accepted best practice principles and relevant guidance. 

Risk management 

I have assessed our risk management arrangements and confirm that they are in accordance with the guidance set out in the Scottish Public Finance Manual. The year-end Certificates of Assurance include a dedicated section assessing the effectiveness of Revenue Scotland’s risk management approach over the year and no significant control matters were raised. This, alongside the assessment of risk throughout the year, contributes to my overall confidence assessment offered; further confirming that robust arrangements and practices were in operation throughout 2021-22. I was also pleased to receive a ‘substantial assurance’ rating from our internal auditors in respect of our risk, control and governance procedures, confirming my assessment.

Remuneration and Staff Report


The remuneration of senior civil servants is set in accordance with the rules set out in chapter 7.1, Annex A of the Civil Service Management Code and in conjunction 

with independent advice from the Senior Salaries Review Body (SSRB). In reaching its recommendations, the SSRB is to have regard to the following considerations: 

  • the need to recruit, retain and motivate suitably able and qualified people to exercise their different responsibilities 

  • regional/local variations in labour markets and their effects on the recruitment and retention of staff 

  • government policies for improving the public services including the requirement on departments to meet the output targets for the delivery of departmental services 

  • the funds available to departments as set out in the Government’s departmental expenditure limits 

  • the Government’s inflation target 

  • evidence they receive about wider economic considerations and the affordability of their recommendations. 

Further information about the work of the SSRB can be found in the UK Government website

The remuneration of non-senior civil servants within Revenue Scotland is set in accordance with Scottish Government Public Sector Pay Policy 2021-2022 as part of the Scottish Government Main Bargaining Unit. 

Revenue Scotland’s Board members are non-executive and receive fees for duties on behalf of Revenue Scotland including attendance at Revenue Scotland Board and committee meetings. Fees are paid at the daily rate set out in their letters of appointment as increased annually in line with the Scottish Government Public Sector Pay Policy. Expenses incurred in carrying out these duties are also reimbursed.

Remuneration and Staff Report 

Fees of Board members and salaries of the Senior Leadership Team are shown below:


Non-executive Board 









Aidan O’Carroll 

Chair from 1 August 2021 


Lynn Bradley 

Board member 



Simon Cunningham (1) 

Board member 



Jean Lindsay 

Board member 



Martin McEwen 

Board member 



John Whiting CBE 

Board member 



Dr Keith Nicholson 

Chair until 31 July 2021 



Jane Ryder 

Board member until 31 December 2020 


Iain Tait 

Board member until 31 December 2020 


(1) Fees shown for Simon Cunningham for 2020-21 include amounts paid while he was a co-opted member of the Audit and Risk Committee. He became a full member of the Board in January 2021. 

Non-executive Board members are not employees of Revenue Scotland and do not benefit from pension arrangements.

None of the above received any benefits in kind or bonus payments in the years 2021-22 or 2020-21. 

Salary covers both pensionable and non-pensionable amounts and includes: gross salaries; overtime; recruitment and retention allowances; or other allowances to the extent that they are subject to UK taxation and any ex gratia payments. It does not include amounts which are a reimbursement of expenses directly incurred in the performance of an individual’s duties. 

The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual). The real increases exclude increases due to inflation or any increase or decreases due to a transfer of pension rights. 


Senior Leadership Team 

Salary £000 

Pension Benefits to the nearest 


Total 2021-22 


Total 2020-21 






Elaine Lorimer 

Chief Executive 







Neil Ferguson 

Head of Corporate Functions 







Mairi Gibson 

Head of Legal Services 







Michael Paterson 

Head of Tax 







None of the above received any benefits in kind or bonus payments in the years 2021-22 or 2020-21. 

Salary covers both pensionable and non-pensionable amounts and includes: gross salaries; overtime; recruitment and retention allowances; or other allowances to the extent that they are subject to UK taxation and any ex gratia payments. It does not include amounts which are a reimbursement of expenses directly incurred in the performance of an individual’s duties. 

The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual). The real increases exclude increases due to inflation or any increase or decreases due to a transfer of pension rights. 

air pay disclosure 

Reporting bodies are required to disclose the percentage increase in pay from the previous financial year for the highest-paid director in their organisation compared to the average percentage increase for all employees of the organisation. In 2021-22 the pay of the highest-paid member of the Senior Leadership Team fell by 5% from 2020-21 compared 

to an average fall of 2% for other employees. The fall in the pay of the highest-paid member of the SLT arose due to a backdated increase implemented in March 2021 without a similar payment in 2021-22. The fall in the average pay of employees arises as staff who left during 2021-22 were replaced with staff on lower incremental points within pay grades. Actual grade pay increases varied from 1% for the highest grades to 4.5% for the lowest grades. 

Reporting bodies are also required to disclose pay-ratio information for the highest-paid director and median and quartile employee pay. 






25th percentile 


75th percentile 








Employee pay 










Employee pay 




No employee received remuneration in excess of the highest-paid member of the Senior Leadership Team. Remuneration ranged from £21,000 to £99,000 (2020-21: £23,000 to 


Pension benefits


Senior Leadership Team 

Accrued pension at NRA as at 31 March 2022 and related lump sum


Real increase in pension and related lump sum at



CETV as at 31 March 2022


CETV as at 31 March 2021


Real increase in CETV in 2021-22


Elaine Lorimer – Chief 


45-50 plus a lump sum of 


0-2.5 plus a lump sum 

of 0 



Neil Ferguson – Head of Corporate Functions 






Mairi Gibson – Head 

of Legal Services 






Michael Paterson 

– Head of Tax 

40-45 plus a lump sum of 


0-2.5 plus a lump sum 

of 0 




Pension benefits are calculated on normal retirement age (NRA) where the pension entitlement is due at that age or at current age if over NRA. 

The above pension data was supplied to Revenue Scotland by MyCSP, pension administrators. 

Civil Service pensions 

Pension benefits are provided through the Civil Service pension arrangements. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis with a normal pension age equal to the member’s State Pension Age (or 65 if higher). From that date all newly appointed civil servants and the majority of those already in service joined alpha. Prior to that date, civil servants participated in the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has four sections: three providing benefits on a final salary basis (classic, premium or classic plus) with a normal pension age of 60; and one providing benefits on a whole career basis (nuvos) with a normal pension age of 65. 

These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium, classic plus, nuvos and alpha are increased annually in line with Pensions Increase legislation. Existing members of the PCSPS who were within 10 years of their normal pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who were between 10 years and 13 years and 5 months from their normal pension age on 1 April 2012 switch into alpha sometime between 1 June 2015 and 1 February 2022. Because the Government plans to remove discrimination identified by the courts in the way that the 2015 pension reforms were introduced for some members, it is expected that, in due course, eligible members with relevant service between 1 April 2015 and 31 March 2022 may be entitled to different pension benefits in relation to that period (and this may affect the Cash Equivalent Transfer Values shown in this report – see below). 

All members who switch to alpha have their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes.) Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a defined contribution (money purchase) pension with an employer contribution (partnership pension account). 

Employee contributions are salary-related and range between 4.6% and 8.05% for members of classic, premium, classic plus, nuvos and alpha. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years initial pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum. Classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium. In nuvos a member builds up a pension based on his pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. Benefits in alpha build up in a similar way to nuvos, except that the accrual rate is 2.32%. In all cases members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004. 

The partnership pension account is an occupational defined contribution pension arrangement which is part of the Legal & General Mastertrust. The employer makes a basic contribution of between 8.0% and 14.75% (depending on the age of the member). The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3.0% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally provided risk benefit cover (death in service and ill health retirement). 

The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of classic, premium and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes, but note that part of that pension may be payable from different ages.) 

Further details about the Civil Service pension arrangements can be found at the website 

Cash equivalent transfer values 

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. 

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at 

their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV 

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period. 

Staff report 

Staff of Revenue Scotland are civil servants, part of the Scottish Administration, rather than the Scottish Government, and are required to adhere to the standards set out in the Civil Service Code applicable to staff in Non-Ministerial Offices in Scotland. The code sets out the framework within which all civil servants work, and the core values and standards of behaviour which they are expected to uphold. 

Staff are appointed by Revenue Scotland and act under the direction of the Board of Revenue Scotland. Revenue Scotland is responsible for ensuring that staff recruitment arrangements are fair, open and transparent in line with the Civil Service Commissioners’ Recruitment Principles. All recruitment, including for Senior Civil Service posts, adhere to the Scottish Government’s recruitment policies and procedures. 

Average number of people employed 

The average number of whole-time equivalent people employed during the year was as follows:








Permanent contracted staff 






Fixed term contracted staff 




Seconded in staff 




Seconded out staff 




Agency staff 





Average number of persons employed 





The staff numbers shown above for 2021-22 include 1 FTE for a member of staff who is seconded to Scottish Government and whose staff costs are recharged. The numbers for 2020-21 include the equivalent of 3 FTE members of staff who were temporarily seconded to Scottish Government working in positions related to the COVID-19 pandemic. Costs associated with the COVID-19 secondments in 2020-21 were borne by Revenue Scotland and not recharged. 

Staff composition 

The average number of people of each sex employed by Revenue Scotland by category is set out in the following table. The numbers include permanent and temporary staff. 



  2022-21   2020-21  
  Female Male Female Male

SLT – Senior Civil Servant






SLT – Others 

























Gender pay gap 

The gender pay gap is calculated as the difference between average hourly earnings of men and women as a proportion of average hourly earnings (excluding overtime) 

of men’s earnings. A positive pay gap means that men earn more than women on average. 

The gender pay gap is a means of highlighting a disparity in the pay received by men and women and is influenced by both the pay levels for equivalent jobs and the distribution of men and women across the grades within the permanent workforce. 

In 2021 the gender pay gap for Scotland was 11.5% and 15% for the UK.9 This is the median figure which is the standard figure used by the Office of National Statistics (ONS) to calculate the pay gap. Data for 2022 has not yet been published by the ONS. 

The median gender pay gap for all staff at Revenue Scotland at the end of March 2022 is 0% (2021: 18%). The movement arises from changes in the gender mix of staff at March in each financial year as represented in the table above as well as changes in grades of those staff. 

Within Revenue Scotland, where men and women are undertaking work of an equal value (i.e. within the same pay range) they are paid a similar rate. A pay gap can arise if a higher 

percentage of female staff are at lower grades than male staff and the size of the organisation means that figures can be disproportionately affected by a small change in composition. It should be noted that the pay gap is calculated at a point in time and can move significantly from month to month. 

Sickness absence 

Revenue Scotland recognises that the success of any organisation depends largely on the effective performance and full attendance of all its employees. People are a valued resource, and as an employer 

Revenue Scotland’s attendance management procedures are designed to maintain a happy, well-motivated and healthy workforce. The procedures are aimed to: 

  • be supportive and positive 

  • promote fair and consistent treatment for everyone 

  • encourage, assist and make it easy for people to stay in work 

  • explain employees’ entitlements and roles and responsibilities. 

In 2021-22 an average of 9 working days per employee were lost (2020-21: 8 days). 

Staff turnover 

Staff turnover for staff for the year ended March 2022 was 35% compared with 42% 10 for the year ended March 2021. This includes agency staff where contracts may have come to a natural end. During the year 39% of leavers transferred to posts within other Scottish public bodies mainly on promotion. 

Staff engagement 

Revenue Scotland participates in the Civil Service People Survey and includes the employee engagement index as one of the key performance indicators. More information on this is given on page 34 under KPI 6.

Employees with disabilities Revenue Scotland complies with the Scottish Government’s Civil Service Code of Practice on the employment of people 

with disabilities. The code aims to ensure that there is no discrimination on the grounds of disability and that employment opportunities and career advancement is based solely on ability, qualifications and suitability for the work.

Diversity and equality 

Equality and diversity are central to the way that Revenue Scotland conducts its business and this is demonstrated in the Corporate Plan and People Strategy as well as being set out in the Equality Mainstreaming Reports.

Health and safety 

A review of health and safety provision was undertaken last financial year. This led to the training of additional first aiders, fire marshals and health and safety liaison officers (HSLO’s). This supports and facilitates Revenue Scotland’s approach to hybrid working and the increased use of its office space coming out of the COVID-19 pandemic. Duty managers in the office play an important role in health and safety awareness and implementation. This was reflected in a refreshed update to the duty manager handbook. 

Workplace inspections placed emphasis on cleaning procedures within the office particularly in the months when COVID-19 was prevalent. These inspections were conducted with Trade Union assistance. 

Mandatory training supports the development of staff awareness and capability. It helps us monitor and provide business areas with updates on the completion of mandatory health and safety e-learning modules. In order to track compliance around these essential training requirements, the People Services team has developed a tracker. The tracker is used to evaluate completion of all required training and identify any gaps. 

Revenue Scotland has revised its health and safety management arrangements, particularly the information contained within our hybrid handbook. The policy standards have also been embedded within the guidance to staff through the Staff Handbook and Duty Manager Handbook, which provide information on all relevant aspects of health, safety and wellbeing as well as links to the appropriate guidance and wider resource. All relevant procedures have been subject to a thorough review in 2022 as part of the evaluation of our hybrid working model pilot. 

The Health and Safety Annual Report 2021-22 sets out plans for the coming year and reports on risks and mitigations during the reporting year. A refreshed Health, Safety and Wellbeing Committee meets on a quarterly basis to support the delivery of the organisation’s policy and improvement plans, providing oversight and scrutiny of reported information. 

The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR) require that certain categories of accidents, occupational diseases and dangerous occurrences must be reported to the Health and Safety Executive (HSE). There were no incidents of any category reported in 2021-22 or 2020-21. 

Definitions for ‘Occupational Disease’ and ‘Dangerous Occurrence’ can be found on the HSE Website.

Trade Union representatives 

The Trade Union (Facility Time Publication Requirements) Regulations came into force on 1 April 2017. No staff were union representatives in 2021-22 or 2020-21.

Civil Service early departure compensation schemes 

Redundancy and other departure costs are paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972. These are employer costs associated with early departure and are accounted for in full in the year of departure. Where Revenue Scotland has agreed early retirements, the additional costs are met by Revenue Scotland and not the Civil Service pension scheme. Ill-health retirement costs are met by the pension scheme and are not included in the undernoted. 

No members of staff left Revenue Scotland under the scheme in 2021-22 or 2020-21. 

Staff costs for Revenue Scotland in the period 2021-22 are set out above. Wages and salaries include gross salaries, performance pay or bonuses received in year (of which there were none), overtime and any other allowance that is subject to UK taxation. The payment of legitimate expenses is not part of salary. 

The costs of staff who worked on the development of the new tax system in 2020-21 have been capitalised as part of the cost of the asset. 

  Administration costs Total 2021-22 £000 Total 2020-21 £000  
  Permanently employed £000 Other £000      
Wages and salaries 2,768 62 2,830 2,717  
Social security costs 287 7 294 291  
Pension costs 762 16 778 722  
Seconded-in staff costs 0 76 76 0  
Agency staff costs 0 346 346 735  
Staff costs capitalised 0 0 0 (203)  
Total staff costs 3,817 507 4,324 4,262  

Staff costs for Revenue Scotland in the period 2021-22 are set out above. Wages and salaries include gross salaries, performance pay or bonuses received in year (of which there were none), overtime and any other allowance that is subject to UK taxation. The payment of legitimate expenses is not part of salary. 

The costs of staff who worked on the development of the new tax system in 2020-21 have been capitalised as part of the cost of the asset.

Staff costs shown in 2020-21 above include costs borne by Revenue Scotland on staff seconded to Scottish Government to work on COVID-19 pandemic-related posts. These costs in 2020-21 totalled £136,000. 

The Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other Pension Scheme (CSOPS) – known as ‘alpha’ – are unfunded multi-employer defined benefit schemes but Revenue Scotland is unable to identify its share of the underlying assets and liabilities. The scheme actuary valued the PCSPS as at 31 March 2016. The schemes are accounted for as defined contribution schemes under the multi-employer exemption permitted under IAS19 employee benefits. You can find details in the resource accounts of the Cabinet Office: Civil Superannuation

For 2021-22, employers’ contributions of £775,000 were payable to the PCSPS (2020-21 £717,000) at one of four rates in the range 26.6% to 30.3% of pensionable earnings, based on salary bands. 

The Scheme Actuary reviews employer contributions usually every four years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2021-22 to be paid when the member retires and not the benefits paid during this period to existing pensioners. 

Employees can opt to open a partnership pension account, a stakeholder pension with an employer contribution. Employers’ contributions of £2,600 (2020-21: £5,000) were paid to one or more of the panel of three appointed stakeholder pension providers. Employer contributions are age-related and ranged from 8% to 14.75%. Employers also match employee contributions up to 3% of pensionable earnings. 

The information included within the remuneration, pension benefits, Civil Service early departure compensation packages, average number of persons employed and staff costs sections above are covered by the audit opinion. 

Elaine Lorimer – Chief Executive of Revenue Scotland and Accountable Officer 

01 November 2022