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.
Companies must report on their complex financial structures including offshore accounts and notify HMRC
An examination by the Public Accounts Committee (PAC) has revealed serious concerns relating to HMRC’s plans
The mornings after the night that was the British Accountancy Awards; and Andrew Tyrie's latest thoughts on Making Tax Digital timing
Andrew Tyrie suggests there will not be enough time to implement Making Tax Digital (MTD) by April 2018