Thursday, February 16, 2012

Now 25 Whitehall staff are accused of setting up pay deals via private companies to 'avoid' tax

More than two dozen senior officials at the Department of Health are being paid their salaries via private companies in an attempt to avoid tax.

Leaked emails last night revealed at least 25 senior staff at the department receive their salaries without tax deducted at source.

The arrangements are likely to save some of them tens of thousands of pounds a year in tax.

The emails also suggest that officials may have deliberately misled Parliament over the issue to avoid ‘reputational’ damage to the department and possible tax investigations into the affairs of the staff concerned.

The revelations come just a fortnight after Treasury chief secretary Danny Alexander ordered an urgent review into the practice after it emerged that the head of the Student Loans Company, Ed Lester, used a similar arrangement to cut the tax bill on his £175,000 salary. Read More