On 23 May 2012, the Government published a review of the tax arrangements of public sector appointees.
The review identified the number of off payroll engagements worth more than £58,200 per annum across government - and made recommendations to improve the tax transparency of these kind of arrangements. The following document constitutes Cabinet Office’s submission to this review.
Head of the Civil Service Sir Bob Kerslake said:
I believe it is completely inappropriate for any senior permanent position in the civil service to be held by a contractor instead of a civil servant paying tax in the ordinary way.
These new measures are an important step in addressing the relatively small number of cases that breach this principle.
Of course, like all other organisations, the civil service needs to bring in certain specialist skills for short periods and it wouldn’t make sense to incur the cost of putting these people on the payroll.
But it is only right that the civil service should be more transparent than any other employer about these arrangements.
The full review and recommendations can be found at www.hm-treasury.gov.uk.