"HM Revenue & Customs said it will open investigations into the “highest-risk cases” of suspected tax underpayment by senior public officials.
Exaro, the investigative news website, said that HMRC could recover up to £100 million in revenue from the crackdown. Civil servants found to have underpaid tax would have to pay money back with interest and penalties.
They could be billed for unpaid tax going back up to six years, as well as penalties of 30 per cent or more of the amounts owed.
Some accountants told Exaro that individual bills could run into tens of thousands of pounds, and HMRC could recoup a total of up to £50 million in unpaid tax and national insurance, plus another £50 million in interest and penalties.
Last month, Danny Alexander, chief secretary to the Treasury, found that over 2,400 senior public officials earning more than £58,200 a year were "off payroll". Some – said to be “dozens” – were paid this way for more than 10 years. "
They are paid through service companies, or through employment agencies. The amount of tax legally avoided could run into tens of millions of pounds.
An HMRC spokesman said: “We are currently working though the data from the Government’s recent review, alongside other intelligence to make sure the right taxes are being paid.
"We are going to investigate those cases that pose the greatest risk of tax loss, across the board.
“Many public sector engagement will already be paying the right tax as working through a Personal Service Company can be a legitimate commercial arrangement.”
HMRC also told Exaro News today: “Where there are question marks, we shall look at those cases and take action.” HMRC has already started to “risk profile” individuals identified by the Treasury review.
The spokesman added: “We shall be looking through the list. If they stand out as ‘high risk’, we shall be taking action as soon as possible.”
Officials will not be perused if HMRC had sanctioned the arrangements, he said, so long as the individuals concerned had provided the “correct information”.
The issue was about “underpayment” of tax, rather than “evasion”. HMRC would listen to officials with a “reasonable excuse” for having underpaid. He said that it was too early to say how many officials might be investigated or the total tax that could be recovered.
Priorities to be investigated in the next few months will include cases where there is a lack of evidence of a process to establish whether being paid without tax deductions was legitimate, he added.
HMRC will focus on potential breaches of IR35, a rule requiring so-called “disguised employees” with personal-service companies to pay full tax.
Alastair Kendrick, a senior tax expert at the accountants, MHA MacIntyre Hudson, said: “HMRC is unlikely to be lenient. I would be surprised if we do not see a number of public examples made.”
"
Source: More than 2,000 'off payroll' civil servants face tax probe - Telegraph
Exaro, the investigative news website, said that HMRC could recover up to £100 million in revenue from the crackdown. Civil servants found to have underpaid tax would have to pay money back with interest and penalties.
They could be billed for unpaid tax going back up to six years, as well as penalties of 30 per cent or more of the amounts owed.
Some accountants told Exaro that individual bills could run into tens of thousands of pounds, and HMRC could recoup a total of up to £50 million in unpaid tax and national insurance, plus another £50 million in interest and penalties.
Last month, Danny Alexander, chief secretary to the Treasury, found that over 2,400 senior public officials earning more than £58,200 a year were "off payroll". Some – said to be “dozens” – were paid this way for more than 10 years. "
They are paid through service companies, or through employment agencies. The amount of tax legally avoided could run into tens of millions of pounds.
An HMRC spokesman said: “We are currently working though the data from the Government’s recent review, alongside other intelligence to make sure the right taxes are being paid.
"We are going to investigate those cases that pose the greatest risk of tax loss, across the board.
“Many public sector engagement will already be paying the right tax as working through a Personal Service Company can be a legitimate commercial arrangement.”
HMRC also told Exaro News today: “Where there are question marks, we shall look at those cases and take action.” HMRC has already started to “risk profile” individuals identified by the Treasury review.
The spokesman added: “We shall be looking through the list. If they stand out as ‘high risk’, we shall be taking action as soon as possible.”
Officials will not be perused if HMRC had sanctioned the arrangements, he said, so long as the individuals concerned had provided the “correct information”.
The issue was about “underpayment” of tax, rather than “evasion”. HMRC would listen to officials with a “reasonable excuse” for having underpaid. He said that it was too early to say how many officials might be investigated or the total tax that could be recovered.
Priorities to be investigated in the next few months will include cases where there is a lack of evidence of a process to establish whether being paid without tax deductions was legitimate, he added.
HMRC will focus on potential breaches of IR35, a rule requiring so-called “disguised employees” with personal-service companies to pay full tax.
Alastair Kendrick, a senior tax expert at the accountants, MHA MacIntyre Hudson, said: “HMRC is unlikely to be lenient. I would be surprised if we do not see a number of public examples made.”
"
Source: More than 2,000 'off payroll' civil servants face tax probe - Telegraph
I guess. Selecting some text and putting it in bold, can be done left-handed.
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