HMRC paid a senior official nearly £150,000 to continue working for three
months after he left his job, accounts filed by the tax office show.
Chief information officer Deepak Singh had a three year contract at HMRC
which ended in June last year, yet he continued in his role until September,
the Sunday Times reports.
Singh earned £160,000 per annum from the taxman. However, from 19 June 2009
to 18 September 2009 HMRC paid Singh £149,500 through his company Orwell
Consulting.
Singh said he informed the tax office of his daily rate and it was “willing”
to pay it.
A partner at a leading accountancy firm criticised HMRC for allowing Singh to
be paid through his consultancy business, as this would result in him having
less tax liabilities, according to the Sunday Times.
Singh is liable for corporation tax of up to 28%, substantially lower than
the rate of income tax of 40%.
The taxman said it would ensure no tax would be avoided as a result of the
arrangement.
A HMRC spokesman said: “The CIO role is central to the delivery of HMRC’s
commitment to high quality customer services. A seamless transition from the
incumbent to the new CIO was therefore a top priority.
“To achieve this we retained the skills and experience of Deepak Singh for
the interim period in a cost effective way. HMRC has at all times observed its
own rules about the use of contractors and provision of services through
personal service companies.”
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