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Treasury calls for review of top civil servants’ tax affairs

by Accountancy Age Staff

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02 Feb 2012

Danny Alexander

CHIEF SECRETARY to the Treasury Danny Alexander has called for a review of the tax affairs of top civil servants.

The move comes after the BBC's Newsnight uncovered that the Student Loans Company CEO received his £182,000 pay without deductions for tax or national insurance following an agreement with HM Revenue & Customs.

A Freedom of Information request by Exaro News revealed that SLC CEO Ed Lester's salary was paid to his private service company creating a work around so he would not have to pay NI or income tax.

A Treasury spokesman told the BBC that Alexander was "not made aware" of the tax benefits to Lester when he approved his appointment and salary levels, and has now ordered an "urgent review" into civil servants being paid through an agency or private service company.

Visitor comments Add your comment

End of IR35

If HMRC can disapply IR35 for Ed Lester, by implication IR35 can no longer be applied to anyone.

Posted by: Don Owens, 02 Feb 2012 | 16:23

They are all at it!

Ye Gods.....Is there anyone left in "higher circles" that has a modicom of morality in them......Perhaps Diners Club Dave should look closer to home to get some cash in the coffers!

Posted by: Red Five, 02 Feb 2012 | 19:04

IR35

Surely this is a case for invoking IR35?

Posted by: Phil Rees, 03 Feb 2012 | 13:43

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