Senior NHS officials sacked following investigation into off-payroll earnings

[Northerner]

Ministry of Defence and the Department of Health fined a total of £1.5m after it emerged that they were not doing enough to stop staff being paid through companies and potentially reducing their tax bills.

Two Government departments have been fined and 100 NHS bosses and civil servants have been fired after the Treasury discovered that staff were being paid “off the books” through companies.

Danny Alexander, the Chief Secretary to the Treasury, fined the Ministry of Defence and the Department of Health a total of £1.5million after it emerged that they were not doing enough to stop staff being paid through companies and potentially reducing their tax bills.

The fines will be donated to military and health charities, Mr Alexander said.
HMRC has for a number of years been investigating potential breaches of IR35 – a rule that says people cannot be “disguised employees” by paying themselves through companies.

http://www.telegraph.co.uk/news/pol...-investigation-into-off-payroll-earnings.html

What on earth are government departments doing fining each other? What is the point?

 

[HOBIE]

One of the reasons why NHS is under pressure 🙂

 

[trophywench]

Well - do the NHS pay tax and NI in the same way that ordinary companies/employers do? Cos, and I'm not sure about this, doesn't it reduce both parties income tax when such a company is set up by an individual working for them?

Cos that being the case, as well as those individuals having to pay more tax, their employer will also - which hardly saves the NHS any dosh anyway.

I mean - what about the Army etc? Do they pay tax and VAT? - I've wondered on numerous occasions if the NHS pay VAT. I mean, my pump supplies cost silly money anyway and if you add 20% VAT to that, it's ridiculous. Obviously the pump cos have to charge VAT cos they are registered for it but surely if they made the NHS exempt all Roche would have to do (and they are Swiss LOL LOL ROFLMAO) is show 'NHS Sales' of both gadgets and drugs as separate to sales to anyone who isn't exempt - very few in the UK I'd have thought.