IR35 Tax Dodging Scandal
There is a new IR35 scandal related to heads of Government departments.
The Department of Health has now admitted that 25 of their senior staff are being paid not a salary but through Limited Companies.
They paid out more than £4m to senior employees that way.
Who could be more termed ‘disguised employees‘ than these guys. Yet whilst HMRC are out hunting IT Contractors for whom the IR35 legislation was never designed, but who are still caught up in its net, senior Government department employees were saving themselves huge chunks in tax and national Insurance.
This has come in from the private sector where it is now normal for permanent senior people to have three year rolling contracts. So, they pay themselves via Limited Companies.
I‘ll bet that they don’t restrict it to the Department of Health either.
Wouldn‘t it be juicy if senior HMRC managers were dodging IR35 in this way by paying their wages into a Limited Company. That would be whilst their HMRC juniors were out harassing genuine contractors.
Furthermore, the Department of health were denying to Labour MP, Gareth Thomas, that this was happening.
Officials had said that these members of staff were genuine contractors even if some had been working there for years.
It seems, therefore, that the Government were trying to attract top people from the private sector and this was a ruse to be able to pay them more money.
Well, I never!
This is truly unbelievable.
Can you remember all the things that Governments have said about wicked contractors? They said they were trying to get away with not paying their fare share of tax?
And now right in the heart of Government the senior people there were doing exactly the same. That’s even though they really were disguised employees – unlike contractors.
What a scandal!
It would make you weep!