Corporate Governance Report

The Directors’ Report

Revenue Scotland Board 2024-25

In line with paragraph 1 of Schedule 1 of 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. This is subject to evidence of effective performance and their continued possession of the skills, knowledge, and experience required for 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.

The terms of appointment for board members, and details of our senior leadership are below. For further information visit Board Members and Senior Leadership Team.

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 I, as the Accountable Officer, am required to comply with the requirements of the Government Financial Reporting Manual (FReM) and 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. The Accountable Officer takes 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 Scottish Government 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 confirm that 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 and framework

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 collection and management of Scotland’s 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 dayto-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. I can confirm that these have been in operation during 2024-25 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. It does 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, corporate performance, tax compliance, staff, health, safety and wellbeing, changes in the devolved taxes, progress on the introduction of new taxes
• scrutiny of the Annual Reports and Accounts
• reports from the Audit and Risk Committee and Staffing and Equalities Committee
• strategic engagement with key partners and service users.

I can report that during 2024-25 the Board met on six occasions which included a Board strategy session (2023-24: six). During this time our Board scrutinised and considered a number of specific matters including:

• the review of the Framework Document
• approval of the 2024-27 Business Plan
• updates on the programme of activity related to the new taxes; SAT and SBSL
• development of the Data and Digital vision statement and progress to date for the data and digital programme
• proposals set out within Revenue Scotland’s stakeholder engagement plan
• approval of the Health and Safety Policy and Policy Statement

Audit and Risk Committee

The Audit and Risk Committee (ARC) supports the Board and Accountable Officer through 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
• overseeing the financial reporting process

Members of the committee during 2024-2025 were Martin McEwen (Chair until 22 January 2025), Simon Cunningham (Deputy Chair until 22 January 2025 and Chair from 23 January 2025) and Robert MacIntosh (Deputy Chair from 19 March 2025). Stephen Ramsay and Julie Hesketh Laird were appointed to the Committee on 3 February 2025 as co-opted non-voting members.

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

I can report that during 2024-25 the committee met seven times; this included a strategy session on risk management (2023-24: six). The committee engaged in a number of relevant matters including:

• consideration of reports from Internal Audit
• consideration of reports from Audit Scotland including their interim audit letter
• a strategy session to review Revenue Scotland’s Corporate Risk Register, with a focus on alignment with the new Corporate Plan 2025-2027
• deep dive on the programme to deliver Scottish Aggregates Tax
• consideration of assurances around the introduction of new corporate IT systems for HR and Finance

The committee reviewed its effectiveness during 2024-25, using the checklist set out in the Scottish Government’s Audit Committee Handbook. It found no issues of concern which could affect its normal function.

Staffing and Equalities Committee

The Staffing and Equalities Committee (SEC) advises and provides assurance to our Board and Accountable Officer on issues relating to people, equality, diversity and inclusion, and health, safety and wellbeing.

During 2024-25 the committee continued to follow the format for the operation of the committee that was introduced by the Board in 2022-23. This was aimed at ensuring a more strategic focus for the committee. Following a review, the committee agreed that this format continued to meet the needs of SEC and the Board, and should continue. 

The terms of reference for the committee are published on Revenue Scotland’s website within the Board’s Standing Orders.

Members of the committee during 2024–25 were Jean Lindsay (Chair), Idong Usoro (Deputy Chair) and Ken Macintosh. Elizabeth Barnes was appointed to the Committee on 3 February 2025 as a co-opted non-voting member.

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. Other staff members attend as required.

I can report that during 2024-25, the committee met three times (2023-24: three) and engaged in a number of relevant matters including supporting the development and scrutiny of:

• the People Strategy and action plan
• staff survey
• workforce and succession planning
• health, safety and wellbeing, including the Health and Safety Policy, Policy Statement and Staff Handbook
• equality, diversity and inclusion (EDI), including the EDI Strategy and action plan

The committee reviewed its effectiveness during 2024-25 and found no issues of concern which could affect its normal function.

Assurances Provided to the Accountable Officer

I have received written assurances from my Heads of Service, who have responsibility for the operation and effectiveness of internal controls within Revenue Scotland’s Tax, Legal and Corporate Functions teams.

These assurances raised some issues in respect of financial controls within the organisation. The issues were identified by Audit Scotland and reported within their interim audit letter to our Audit and Risk Committee and some additional matters identified internally relating to backlogs of work within the finance function.

Audit Scotland’s interim audit letter, summarising the audit work completed during their 2024-25 interim audit of Revenue Scotland, identified four issues. Two of these related to recommendations from the prior year which had since been addressed. The other two related to weaknesses in controls around user permissions and to four sets of reconciliations which had not been undertaken in full during the year.

The other matters identified internally related to other routine finance tasks which had lapsed during the year, leading to backlogs.

Prompt action was taken to establish a programme of work to address the issues identified, overseen by a Steering Group including senior representation from the Scottish Government’s Directorate of Internal Audit and Assurance. 

All of the issues identified have been addressed and the backlogs all brought under control. I can confirm that in undertaking this work, no fraud or losses of tax revenues were identified nor was there any delay to the annual audit process. The Board and Audit and Risk Committee were kept informed throughout and were assured by the action that has been taken.

In order to ensure that our controls are sufficiently robust and to prevent any recurrence of these issues, I commissioned a review by our internal auditors to examine the root causes and to make recommendations that will identify where we can enhance the controls we have in place and strengthen management oversight. 

The implementation of the Oracle Cloud platform, which I referred to in last year’s report, is one of the largest transformation projects the Scottish Government has undertaken in years. It has brought our HR, Finance and Procurement data into one integrated solution, delivering a single data source, improved processes, improved controls and greater transparency of data.

The platform was implemented in the Scottish Government and 32 public sector organisations in October 2024. A phased approach on 1 October saw around 3,000 users begin accessing the first three finance modules, with the HR component rolled out to the full customer base (around 20,000 users) across Scottish Government core and 32 public sector bodies on 7 and 8 October. A further rollout on 14 October saw the implementation of additional finance modules. The platform has been built around a suite of best practice processes, adopted from the UK Government Global Design principles (now superseded by NOVA Functional Reference Model) and was implemented by the Scottish Government in response to the recognition that the previous Finance and People platforms, SEAS and e-HR respectively, were approaching the end of their useful lives and had not kept pace with the scale or functions of the organisation. 

To ensure that the platform continues to meet the ever evolving needs of modern government the Scottish Government has put in place a dedicated management team which will manage and maintain the platform with a process of quarterly updates.

Revenue Scotland experienced some transitional issues in moving to the new Oracle platform and these are reflected in the assurances from my Heads of Service. Issues experienced during the introduction of the system included delays to some (non-tax related) payments made by Revenue Scotland and the need to implement alternative arrangements for the collection of Direct Debits. 

I am pleased to report that these have not had a fundamental impact on our functions. The majority of our payments are now being made within required timescales and we continue to monitor this closely, engaging with Scottish Government as appropriate given that this remains outwith our direct control. We have also introduced a new shared service arrangement with the Accountant in Bankruptcy for the processing of Direct Debits. This replaces our previous arrangement and was implemented without any disruption to the payments we receive through this channel. 

My team and I continue to work closely with the Scottish Government to ensure that the Oracle system works effectively for our organisation and to encourage continued investment, in order that the maximum benefits of the new system can be realised.

No other significant matters were raised with me.

The Accountable Officer of SEPA has provided me with assurance in respect of the statutory functions delegated to SEPA by Revenue Scotland. No significant issues were raised with me by SEPA.

I also receive copies of the certificates of assurance provided to the Scottish Government’s Director-General Corporate, produced to support the assurances she provides to the Principal Accountable Officer in respect of the Scottish Government’s digital, financial, and people services. These are shared with me as some aspects of these are relevant to the services we receive from the Scottish Government as a shared service. No significant issues were raised with me. These certificates did, however, reference the implementation of Oracle Cloud, which I have discussed above.

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, our own information policies, and best practice. We have an Information Assurance Governance structure which prioritises and manages information risks. The governance structure: 

• protects the organisation, its staff, and our service users from information risks where the likelihood of occurrence and the consequences are significant
• ensures adherence with statutory duties
• assists in safeguarding Revenue Scotland’s information assets

Revenue Scotland has a Senior Information Risk Owner (SIRO) whose 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 SIRO is supported by a Data Protection Officer (DPO) and a number of Information Asset Owners (IAOs), who provide assurance to the SIRO that proper controls are in place.

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

The DPO monitors internal compliance with data protection laws, advises on the organisation’s data protection obligations, reviews Data Protection Impact Assessments (DPIAs) and acts as a contact point for data subjects and the Information Commissioner’s Office (ICO).

In addition, our Information Governance Group (IGG), chaired by the DPO, steers Revenue Scotland’s approach to information governance, reviews issues arising with regards to data protection, carries out horizon scanning in relation to new legislative and other developments relating to information governance, and monitors our compliance with our mandatory legal obligations. 

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.

During 2024-25, Revenue Scotland attended Parliament on 19 November 2024 for an annual evidence session on our performance during 2023-24. Revenue Scotland’s supporting legislation, our Corporate Plan, and this Annual Report are all publicly available documents. The Corporate Plan 2024-27, on which this document reports, was approved by Scottish Ministers and laid before the Scottish Parliament on 28 March 2024, and this report will be laid before Parliament in October 2025. Corporate plans, all annual reports and accounts, and minutes of Revenue Scotland Board meetings are available on the corporate documents section of our website.

Internal Audit

The Scottish Government’s Directorate for Internal Audit and Assurance (DIAA) provide Revenue Scotland’s internal audit service through a shared service arrangement with the Scottish Government.

DIAA produce an annual audit plan which is reviewed by the Audit and Risk Committee, who provide advice on the plan to the Board and the Accountable Officer. 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:

Commercial Relationship Management

This review looked at the controls in place to manage risk around our contract and commercial relationship management arrangements. It found a good understanding of the role that commercial relationship management plays within the organisation and a strong attitude and ability to develop it further.

A ‘Reasonable’ assurance rating was awarded, recognising that there were some areas where improvements were required to enhance the adequacy and effectiveness of procedures. These areas for improvement related to:

• providing clarity in relation to the governance structure for contract management
• due diligence on lower value contracts
• maintaining the contracts register
• providing contract extension/award recommendations in a timely manner

The report also recommended identifying actions to strengthen capability around commercial relationship management and to ensure that the organisation obtains the most benefit and added value from commercial relationships.

Stakeholder Engagement

This review looked at the controls in place to manage the risk surrounding our stakeholder engagement arrangements. The work considered the approach taken by Revenue Scotland and the benefits it had delivered.

A ‘Reasonable’ assurance rating was awarded, recognising that there were some areas where improvements were required to enhance the adequacy and effectiveness of procedures. The review found the overall controls and governance of stakeholder engagement were well managed and identified opportunities for improvement related to: improving capacity and capability across all teams to deliver a consistent standard of stakeholder engagement; improving guidance to facilitate a more consistent approach to recording of stakeholder engagement data; strengthening the lessons learned approach; and further developing the Stakeholder Engagement plan to provide more clarity and ensuring that the plan is followed consistently.

Information Management

This review evaluated and reported on the controls in place to manage the risk surrounding Revenue Scotland’s information management arrangements.

A ‘Substantial’ assurance rating was awarded. The review highlighted the organisation’s 

strong and compliant information management practices, which aligned with applicable Scottish Government guidance. It was noted that there was: a clearly defined governance structure to support effective oversight; efficient information management gathering and dispersal methods; and robust data protection measures in place. It also recognised work to enhance information management capabilities and work to ensure that information management documents, strategies and policies were kept up-to-date.

Opportunities for improvement were identified in relation to the review of data held on shared drives, to ensure on-going compliance with organisational information management policies, and ensuring that information management roles held by staff were consistently reflected within individual’s annual work objectives.

Annual Assurance Opinion 2024-25

The overall annual assurance opinion provided by DIAA for 2024-25 was ‘Substantial’ assurance. This reflects DIAA’s opinion that Revenue Scotland’s risk, governance and control procedures remain effective in supporting the delivery of its objectives and that any exposure to potential weakness is low and the materiality of any consequent risks negligible. 

DIAA reported that the culture within Revenue Scotland continues to be open to audit and assurance, with the RS Senior Leadership Team engaging with designated DIAA contacts on key strategic and operational matters.

External Audit

External Audit is provided by Audit Scotland. The 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 further in this document.

As part of the 2023-24 audit undertaken by Audit Scotland, the matter highlighted for attention is for the scope for medium term financial planning arrangements to be developed further to highlight and ensure financial sustainability.

Action to address this matter is underway and is expected to be completed during 2025-26.

Audit Scotland issued an interim audit letter in May 2025, in which they summarised the audit work they had undertaken during their 2024-25 interim audit of Revenue Scotland and identified some risks related to financial controls which required to be addressed. Details of the organisation's response to this letter are set out in the Assurances Provided to the Accountable Officer section.

Assessment of Corporate Governance

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

I have noted above the issues experienced in relation to some of our finance controls. I am satisfied that the action that has been taken has ensured that these controls are now all working satisfactorily. In addition, the review by our internal auditors will provide me with additional assurance and expert advice on any further actions we should be taking to ensure that these controls are as robust as they can be moving forward.

I continue to ensure that these controls are subject to review by management on a regular basis. Our internal controls also undergo formal review by both Internal and External Audit, whose reports are made available to the Audit and Risk Committee. Having assessed our corporate governance arrangements, I 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 detailed review of the Corporate Risk Register undertaken with our Audit and Risk Committee and 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 2024-25.

Remuneration and Staff Report

Remuneration

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 and, where relevant, promote 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 2024-25 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 and increased annually in line with the Scottish Government Public Sector Pay Policy. Expenses incurred in carrying out these duties are also reimbursed.

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

Non-executive Board members are not employees of Revenue Scotland and do not benefit from pension arrangements. The maximum banded annual fees that could be claimed under the letters of appointment are: Chair £15,000-20,000 and Board members £10,000-15,000.

None of the above received any benefits in kind or bonus payments in the years 2024-25 or 2023-24. 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.

Fair 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 and the average percentage increase for all employees of the organisation. In 2024-25 the mid-point of the band of the highest-paid member of the Senior Leadership Team increased by 4.26% from 2023-24. The average increase for all other employees was 4%. Actual grade pay increases varied from 3% to 9%. Reporting bodies are also required to disclose pay-ratio information for the highest paid director and median and quartile employee pay.

No employee received remuneration in excess of the highest-paid member of the Senior Leadership Team. Remuneration ranged from £25,235 to £117,329 (2023-24: £23,735 to £111,741)

Pension benefits

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. Pension data is 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 switched onto Alpha sometime between 1 June 2015 and 1 February 2022. The Government removed discrimination identified by the courts in the way that the 2015 pension reforms were introduced for some members. As a result, eligible members with relevant service between 1 April 2015 and 31 March 2022 may have been entitled to different pension benefits in relation to that period.

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 their 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 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.

The pension figures for officials show pension earned in PCSPS or Alpha, as appropriate. Where the official has benefits in both the PCSPS and Alpha the figure 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 Civil Service Pension Scheme 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 at Revenue Scotland are civil servants who form part of the Scottish Administration, rather than the Scottish Government, and must adhere to the Civil Service Code applicable to personnel 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 employees

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

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.

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. It is influenced by both the pay levels for equivalent jobs and the distribution of men and women across the grades within the permanent workforce. 

Provisional Data for 2024 published by the ONS reports the gender pay gap for Scotland as 

9.1% and 13.1% for the UK. This is the mean figure which is the standard figure used by the 

Office of National Statistics (ONS) to calculate the pay gap. The median gender pay gap for all staff at Revenue Scotland at the end of March 2025 was 4.1% compared to 0% in 2023-24, and the mean gender pay gap is 5.9% compared to 1.6% in 2023-24. 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 and absence

We recognise 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 aim to: 

• be supportive and positive
• promote fair and consistent treatment for everyone
• encourage, assist and support people to stay in work
• explain employees’ entitlements and roles and responsibilities

In 2024-25 an average of 10.7 working days per employee were lost (2023-24: 8.6 days). This increase was attributed to increase in long term absences 6.7% (2023-24 was 3.9%), short term absence levels remain similar 4% (2023-24 was 4.7).

Staff

Turnover was reported in previous reports as total staff leaving the Scottish Government (excluding agencies and non-departmental public bodies) in the 12-month period divided by the average headcount over that period, 7%:2023-24. Churn was reported as total staff leaving the business area in the 12-month period divided by the average headcount over that period, 13%:2023-24. For 2024-25 turnover is now defined as all staff leaving the business area in the 12-month period divided by the average headcount over that period, this was 16%.

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 in the Performance report.

Employees with disabilities

We comply with the Scottish Government’s Civil Service Code of Practice on the employment of people with disabilities. The code aims to ensure 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.

Equality, Diversity, and Inclusion

Equality and diversity are central to the way we conduct our business, and this is demonstrated in the Corporate Plan and People Strategy, as well as being set out in the Equality Mainstreaming Reports. More information on Equality and Diversity can be found in the Performance report.

Health and Safety

Health and safety is a central priority for Revenue Scotland. We are committed to developing a positive health and safety culture and ensuring that all employees are trained and aware of their responsibilities. Over the past year we have taken forward a range of activity to promote health and safety awareness and ensure training compliance.

A key priority has been the launch of our refreshed Health and Safety Policy and Policy Statement, which was completed early in 2024-25. To compliment the Policy and embed its importance across our staff, a supporting staff handbook was developed and launched during the period. Early 2025-26 will see a training package on the policy being added to our set of mandatory training for all staff. During 2025-26, this will be complemented with specific training for our staff who will be carrying out tax compliance site visits. 

Our dedicated Health, Safety, and Wellbeing Committee has continued to play a pivotal role in maintaining and enhancing our safety controls. Throughout the 2024-25 period the team met regularly to review safety actions and discuss feedback from across the organisation. These meetings have been crucial in fostering a culture of continuous improvement and ensuring that all safety measures are effectively implemented and updated in response to both internal and external feedback. 

Our Health and Safety Annual Report for 2024-25 outlines our strategic approach for the coming year. This report details our plans to sustain and enhance our safety protocols. It focuses on both pre-emptive measures and responsive strategies to address any emergent issues. It serves as a roadmap guiding our efforts to ensure the health and safety of all our employees and stakeholders and reinforcing our commitment to upholding high standards of workplace safety.

Recognising the unique challenges presented by our operations, which include routine organisational activities and specific tasks like landfill site visits, we have continued to utilise specialist knowledge that is crucial for these environments. Through our Memorandum of Understanding (MoU) with them, SEPA provides us with competent advice in respect of landfill site visits. This allows us to benefit from their extensive expertise in conducting site visits across a variety of settings. This is valuable in ensuring high standards of health and safety in these environments.

This year we have continued to utilise our Competent Person service, in particular in our planning for SAT site visits. This has included a visit to a working quarry. This has given invaluable insight which will help to shape our risk assessments, checklists and staff training when SAT goes live in 2026. This will be a key focus in 2025-26. The Competent person service allows us to take advantage of specialised expertise and an independent perspective to our risk management practices. This complements the advice we receive from SEPA and will ensure that we fully recognise the accompanying health and safety implications, understand the unique hazards and how to mitigate these.

We are focused on being proactive in addressing these concerns to ensure that we are prepared ahead of implementation of SAT. Our approach includes careful assessment of potential risks. This enhanced capability enables us to tailor our health and safety strategies effectively ensuring that expert advice is available where and when it is most needed.

Health, safety and wellbeing dashboard reports are discussed at each SEC meeting. This adds an additional layer of assurance, ensuring we are meeting our health and safety obligations. SEC also conducts an annual deep dive into our health, safety and wellbeing arrangements to ensure that our health and safety management is appropriate. Additionally, a Health and Safety update is included as a standing agenda item within the CEO reports that are presented to each formal quarterly meeting of the Board.

As well as the mandatory health and safety training provided to all of our staff, several of our senior managers and all our Board members have NEBOSH qualifications in Health and Safety Leadership Excellence, which equips individuals with the knowledge and skills necessary to lead and support the delivery of a culture of health and safety throughout the organisation.

Added to this, our new Risk and Assurance Manager has NEBOSH qualifications in Health and Safety and Fire Safety giving added assurance.

Our Unacceptable Behaviour Policy, which ensures a safe working environment for all of our staff was reviewed and strengthened with the addition of a section on our staff being filmed. Our fire evacuation procedures have also been strengthened so that all of our staff can be accounted for, as far as reasonably practical, if there’s an evacuation at our Victoria Quay premises. 

During 2024-25, we moved to a temporary office space in Victoria Quay to allow for works to take place in our permanent location as part of an ongoing Scottish Government heating upgrade project. The temporary area was risk assessed ahead of our staff taking occupation. Concerns around the safety of the area were raised with the Scottish Government Project lead and Victoria Quay house team and were satisfactorily resolved ahead of occupation.

Good co-ordination across all of our teams led to a smooth and safe transition which was repeated when we moved back to our permanent area in December 2024.

Our office areas in Victoria Quay and St Vincent’s Plaza were inspected every quarter in 2024-25 to ensure they were safe for all of our staff to use.

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 of these categories reported in 2023-24 or 2024-25. Definitions for ‘Occupational Disease’ and ‘Dangerous Occurrence’ can be found on the HSE Website.

Wellbeing

Revenue Scotland prioritises the promotion of staff wellbeing. This helps us to create a positive and supportive workplace culture that fosters creativity, innovation, and collaboration. We are committed to continually reviewing and updating our staff wellbeing initiatives to ensure that we are providing the best possible support to our staff. Our staff-led health and wellbeing group delivered a variety of health and wellbeing initiatives. These included Learning at work week, Volunteering week, Pride March, Macmillan coffee morning, musculoskeletal awareness and Jumper Day supporting The Charity for Civil Servants.

Our volunteering campaign saw staff support Empty Kitchen Full Hearts in Edinburgh and Merry Go Round in Glasgow, both support those in need. The Civil Service People Survey reports 81% of Revenue Scotland respondents responded positively when asked if Revenue Scotland provides good support for their health, wellbeing, and resilience.

Trade Union representatives

The Trade Union (Facility Time Publication Requirements) Regulations came into force on 1 April 2017. No employees were trade union representatives in 2024-25. There were no trade union representatives during 2023-24.

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 2024-25 or 2023-24.

Staff costs

Staff costs for Revenue Scotland in the period 2024-25 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 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. However, Revenue Scotland is unable to identify its share of the underlying assets and liabilities. The scheme actuary valued the PCSPS as at 31/03/2020. 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 2024-25, employers’ contributions of £1,322,000 were payable to the PCSPS (2023-24: £1,151,000) at 28.97% of pensionable earnings across all 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 2024-25 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, which is a stakeholder pension with an employer contribution.

Employers’ contributions of £nil (2023- 24: £nil) were paid to one or more of the panel of three appointed stakeholder pension providers. Employer contributions are age-related and range from 8% to 14.75%. Employers also match employee contributions up to 3% of pensionable earnings. The information included within the remuneration, fair pay, pension benefits, Civil Service early departure compensation packages, average number of persons employed and staff costs sections above are covered by the audit opinion.

Parliamentary Accountability and Audit Report

Losses and special payments

In accordance with the SPFM, we are required to disclose losses and special payments above £300,000. During 2024-25 there were no losses or special payments within this criteria (2023-24: £nil).

Gifts and Charitable Donations

There were no gifts made during the year (2023-24: £nil). There were no charitable donations made during the year (2023-24: £nil).

Fees and charges

The fees and charges guidance in the SPFM require charges at market rates whenever applicable. RS has nothing to report for the year to 31 March 2025 (2023-24: nil) relating to fees and charges.

Remote Contingent Liabilities

Revenue Scotland are required to report any liabilities for which the likelihood of a transfer of economic benefit in settlement is too remote to meet the definition of contingent liability under IAS37. There are currently no remote contingent liabilities.

Elaine Lorimer – Chief Executive of Revenue Scotland and Accountable Officer

02 October 2025