Latest Public Sector News

05.10.12

Public sector tax avoidance revealed by PAC

A new report criticises tax arrangements of some public sector workers, which could allow them to contribute less.

The Public Accounts Committee suggested that too many were making their own arrangements to pay tax and national insurance, meaning they could be paying less.

A Treasury investigation across government found that for over 32,400 civil servants, tax was not being deducted. The PAC also expressed concern that HMRC had reduced its enforcement of legislation designed to eliminate tax avoidance through the use of intermediaries.

Committee chairwoman Margaret Hodge said: “It was... shocking to find out that no fewer than 2,400 central government appointees were benefiting from off payroll arrangements.

“Furthermore, the Treasury Review only covered civil servants. Tax avoidance in the public sector goes much wider.”

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