MINISTERS are being urged to act on a “scandalous detriment” which union leaders say has led to thousands of teachers being overtaxed, costing them tens of millions of pounds in total.

Education Institute of Scotland general secretary Andrea Bradley has written to the Exchequer Secretary to the Treasury James Murray, demanding he order councils to repay the overpaid tax.

The union says teachers in 16 local authority areas were incorrectly taxed at the Scottish higher rate of 42 per cent on back pay they received after strike action led to a 14 per cent pay rise over two years.

As part of the deal, teachers were awarded a 7 per cent pay rise for 2022-23 which was backdated to April 2022.

A spokesperson for local government body Cosla said it had made clear to the EIS and other teaching unions involved in the dispute that if a pay deal was agreed after the cut-off dates for March payments, the “backpay would be taxed in the tax year 2023-24.”

A spokesman for HMRC said: “It is an employer’s duty to consider the tax implications when making payment awards to their employees and ensure PAYE is accounted for correctly.”