TaxCorporate Tax2,000 senior public staff paid through companies

2,000 senior public staff paid through companies

Hundreds of senior public sector staff are paid through companies, despite working in their department for more than a year

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 Articles

Markets expected to respond positively to US policy changes

Corporate Tax Markets expected to respond positively to US policy changes

5m Alia Shoaib, Reporter
UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

Corporate Tax UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

1y Fraser Simpson, Reporter
An 'incomprehensible and contradictory' Budget

Accounting Firms An 'incomprehensible and contradictory' Budget

2y Richard Crump, Writer
Knight's suitability as OTS chief questioned by MPs

Corporate Tax Knight's suitability as OTS chief questioned by MPs

2y Fraser Simpson, Reporter
Macpherson to leave Treasury after 10 years in Permanent Secretary role

Corporate Tax Macpherson to leave Treasury after 10 years in Permanent Secretary role

2y Chris Warmoll, Writer
MPs launch inquiry into UK corporate tax system

Corporate Tax MPs launch inquiry into UK corporate tax system

2y Fraser Simpson, Reporter
Treasury Select Committee to lead review of UK tax system

Corporate Tax Treasury Select Committee to lead review of UK tax system

2y Calum Fuller, Reporter
Parliament to debate digital tax accounts this month

Administration Parliament to debate digital tax accounts this month

2y Calum Fuller, Reporter