2,000 senior public staff paid through companies

LONG-SERVING public officials are cutting their tax bills by being paid through their own companies.

A leaked review initiated by chief secretary to the Treasury Danny Alexander has found that 2,000 senior officials are paid through their own company structures, rather than taxed directly through PAYE.

Of those, 800 have worked for their department for more than two years. A further 400 have worked for more than a year.

The Treasury wants longer term ‘off payroll’ contracts earning more than £220 a day to prove they are paying full income tax and NI, reports Press Association.

Departments that fail to better manage the contracts will face sanctions of up to five times the contract paid.

Related reading