Folks in the public sector – earning shedloads and avoiding paying Income Tax?

high-earners are allowed to make their own tax arrangements rather than be paid through the PAYE system.

In one case investigated by File on 4, the chief executive of a London council’s housing arm was paid more than £900,000 ($1.4m) through his company over a four year period.

Apologies if this has been done.

I appreciate that this is a very small sample of people at the very top of the public sector “pyramid”, so not in any way representative.

However, i do feel that the general representation of public sector = low may is equally misrepresentative.

In my own disciplne public sector pay can be equal or better than respective consultancy pay, and for far more comfortable working conditions / work life balance.

Well it’s good enough for Red Ken so why not ?

😉

i do feel that the general representation of public sector = low may is equally misrepresentative

You know that these are a tiny, tiny proportion of those employed by the public sector, right? And they’re doing exactly what that same level of people are doing in the private sector?

In my own disciplne public sector pay can be equal or better than respective consultancy pay, and for far more comfortable working conditions / work life balance.

Is your discipline street sweeping, nursing, teaching, highways design, social work, …?

You know that these are a tiny, tiny proportion of those employed by the public sector, right?

I’m pretty sure that i said that ^^ 😉

Yes, but you then used this tiny proportion to say you think the “the general representation of public sector = low may is equally misrepresentative”, which it is not.

STRIKE!STRIKE!STRIKE!

Yes, but you then used this tiny proportion to say you think the “the general representation of public sector = low may is equally misrepresentative”, which it is not

Nope. I went on to say…

Public sector in full of millionaires dodging tax taking long holidays and being lazy before retiring on gold plated pensions shock!

You know that these are a tiny, tiny proportion of those employed by the public sector, right?
I’m pretty sure that i said that ^^

So what are you complaining about- tax affairs of those at the top of the tree in the public service, pay in general in the public service, or low private sector pay in your area of employment?

People still earn wages? How quaint.

rkk01 – Member
However, i do feel that the general representation of public sector = low may is equally misrepresentative

Yes it is and it has been done to death. Average Public Sector pay is higher than average private sector pay. It’s just that there’s no correlation between job/role and pay across the sectors – just lots of hearsay. Folk seem to forget that the Private Sector includes loads of very low-paid jobs.

People still earn wages? How quaint.

All dividends in the public service. Or salaries for the less fortunate.

It would be interesting to know what the exact figures are for a case like this…

As surely it’s actually cheaper for the council to employ someone on these terms, as they would then not have to cover the pension and employers NI contributions for that person.

Obviously, this would then be offset to some extent by the smaller amount of tax paid by the individual, but would this even out?

Of course everyone in the private sector, earning shed-loads pays their full whack. There’s not a hint of tax avoidance. It certainly isn’t endemic, by any means. in fact they smile as they cheerfully hand over the big cheque to the revenue

Once you get up to these senior positions, the distinction between public and private sector is irrelevant. Its all just the same ****ing gravy train, run for the exclusive benefit of a select few

Yes it is and it has been done to death. Average Public Sector pay is higher than average private sector pay. Folk seem to forget that the Private Sector includes loads of very low-paid jobs.

Yes, done to death. And your statement is just one interpretation. Age, job type and experience are factors which change the result.

vinnyeh – Member
Age, job type and experience are factors which change the result.

Indeed – that’s what I was getting at (poorly?). The overall average shows one thing, but there’s too much variation by other factors to draw any conclusion.

Public sector in full of millionaires dodging tax taking long holidays and being lazy before retiring on gold plated pensions shock!

They promised they’d never tell “the other side” about this. I’m livid !!

“In my own disciplne public sector pay can be equal or better than respective consultancy pay, and for far more comfortable working conditions / work life balance.”

Ok lets look at this, and my current employer and previous employer…

My last finance director got paid in the region of £1.5m basic pay + shares + probably lots of nice tax avoidance schemes. He worked pretty hard for it, but I never got emails from him at the weekend or out of sociable hours. He had use of a jet, house, car etc and his office in London was quite nice.

My current finance director gets paid about £140k. No tax avoidance, no bonuses etc. She works stupid long hours and has a pokey old office.

Now which do you think is Public Sector?

hopefully the loophole will be closed down

though 100 civil servants who may be getting paid in lower tax dividends is pretty much small fry where hmrc are concerned, what was vodafones write off 3bn?

[Devil’s advocate]

Why shouldn’t the tax reduction schemes available to those in the private sector not be available to those in the public sector?

Should public sector workers be excluded from part of tax law? And thus not have the potential to legally pay less tax?

[/Devil’s advocate]

[Devil’s advocate]

Why shouldn’t the tax reduction schemes available to those in the private sector not be available to those in the public sector?

Should public sector workers be excluded from part of tax law? And thus not have the potential to legally pay less tax?

[/Devil’s advocate]

Because these people are permanent employees.

Hardly a private vs public sector issue this, but of course there is a certain irony when tax avoidance involves/exposes public figures (Livingstone etc) and sector roles.

But its the irony that is most interesting – are we now seeing the public sector and socialist mayor candidates merely arguing what a RW monetarist (anyone remember them!!) used to argue way back in the 1970s?

The drive for equality in the UK failed…because it went against one of the basic instincts of all human beings. In the words of Adam Smith, “The uniform, constant and uninterrupted effort of every man to better his condition” – and, one may add, the condition of his children….Few of us believe in a moral code that justifies forcing people to give up much of what they produce to finance payments to persons they do not now for purposes they do not approve of.

Milton and Rose Friedman

What strange metaphorical bedfellows – Ken Livingstone and Milton and Rose Friedman. Imagine dreaming (in a nightmare context) that back in the 1970/80s!!!

Because these people are permanent employees.

They are no more permanent employees than any other contractor that uses the Ltd company set up to avoid paying tax.

They are no more permanent employees than any other contractor that uses the Ltd company set up to avoid paying tax.

Indeed, but if their working practice falls foul of IR35 then that should apply, also S660 if applicable… which I would hope HMRC would chase, however this line in the article is worrying:

Mrs Hodge said she feared HMRC lacked the expertise to keep ahead of clever private sector operators who set up complex tax avoidance schemes.

seeing as there is tax legslisation in place if applicable

My salary as Mayor is taxed as an employee of the GLA. In the same way as when I was an MP my salary was taxed as an employee. Any other income that I have received from outside endeavours has been received on a self-employed basis, to me as an individual (no company or other structure has been involved). No income earned by me has ever been paid to a “service” company, through which a person or person’s freelance earnings can be channeled so that they pay corporation rather than income tax.

Fairly unequivocal setting out of his position by Boris 😉

I just saw red ken and eddie izzard at the University of london union Q&A session

he was quite good, i wanted to ask him about his tax arrangements but couldnt stick around, not sure if anyone else did (there were a few torryboys in the audience)

he was quite convincing and had some very good stuff to say about cycling and housing/rent etc

almost consider voting for him again, im not sure about paddick
either have to be better than borris though!