Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsEconomics, government & business

Taking action on tax avoidance ‘could harm public sector’

by Laura Chamberlain 5 Oct 2012
by Laura Chamberlain 5 Oct 2012

Moves to tackle tax avoidance could make contractors unaffordable for the public sector and hold back efforts to improve public-service delivery.

This is according to economist and commentator John Philpott, former chief economic adviser to the Chartered Institute of Personnel and Development (CIPD), in response to the publication of a report earlier today by the Commons Committee of Public Accounts, which criticised the extent to which “off-payroll” contractors are used in the public sector.

The report recommended that the public sector must avoid the practice of using off-payroll arrangements for staff, adding that this “generates suspicions of complicity with tax avoidance”.

As part of the Government’s efforts to tackle tax avoidance, it has also consulted on the introduction of measures to ensure that the income tax and national insurance contributions of contractors in senior “controlling” roles are deducted at source by the employing organisations rather than paid later by the contractor to Her Majesty’s Revenue and Customs.

Philpott said in a post on his blog that, if contractors are forced to pay higher tax and national insurance contributions, then they will simply be likely to raise their fees.

As a result, he argued, either the finances of public-sector bodies would be hit by the increased costs of hiring these individuals or organisations would be forced to cut back on their use of contractors, both of which would be bad news for those hoping to improve public-service delivery.

Philpott said: “It’s silly to portray contractors as tax-avoiding ‘fat cats’ who can afford to cough up extra taxes without any side effects. Only a minority are the ‘top talent’ media personalities that attract criticism, the majority are working long hours for comparatively little financial reward.”

He added that, while it was understandable that the Government was looking to ensure everyone pays their fair share of tax at a time of austerity, it was “daft” to go about improving tax transparency in a way that could “easily harm public-sector reform, economic growth and jobs”.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Read Philpott’s full blog on the public-sector tax-dodge debate.


Information on determining the employment status of self-employed workers is available on XpertHR.

Laura Chamberlain

previous post
Nine more years of pay squeezes, says TUC
next post
Does the law on performance dismissals need to be changed?

You may also like

Doctors vote for return to strike action

8 Jul 2025

‘Frustrating’ that NHS Plan has overlooked OH, warns...

8 Jul 2025

Employment Rights Bill set to ban employer NDAs

8 Jul 2025

Young people unprepared for world of work, says...

8 Jul 2025

Empower and engage for the future: A revolution...

7 Jul 2025

Bereavement leave to extend to miscarriages before 24...

7 Jul 2025

One in seven ‘revenge quit’ in latest employee...

7 Jul 2025

Skills shortfall in construction threatens housing target

4 Jul 2025

Company director wins £15k after being told to...

4 Jul 2025

MPs demand Home Office tightens visas to protect...

4 Jul 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+