Thu, 24 May 2012

New rules governing ‘off payroll’ appointments in central government will be bought in this year, says the chief secretary to the Treasury, Danny Alexander.

A review of government departments showed that more than 2,400 key public sector appointees have been engaged off payroll, in 3% of cases for more than 10 years.

In 85% of these cases, intermediaries including employment agencies are paid by the departments. In total, 40% of the appointees were IT contractors and 70% of all those employed cost over £400 a day.

Alexander says: "The opaque nature of those engagements has created the conditions where tax avoidance could be taking place.

“We have to bring an end to the ‘don’t ask, don’t tell’ approach to this issue. That’s why I am announcing these new, tighter rules on off payroll appointments in government and passing the detailed findings of the review to HMRC.”