It has been revealed that Deepak Singh, Chief Information Officer at HMRC, who was employed by them for 3 years contracted to HMRC through his personal service company for a three month period beginning June 2009. Singh had a three year contract at HMRC earning £160,000 per annum, ending in June last year.
However, for three months from 19 June to 18 September, HMRC paid Singh £149,500 through his company Orwell Consulting. His three month contract was worth approximately £50,000 per month which was equivalent to his previous annual salary.
HMRC’s accounts read: “For the period 19 June 2009 to 18 September 2009, £149,500 was paid to Orwell Consulting Ltd for the services of Deepak Singh (a director of that company) who held the position of Acting CIO.”
In a statement provided to Contractor UK, a former tax inspector commented: “The circumstances here appear to be a so-called ‘Friday to Monday’ (employee on Friday – limited company supplier on Monday) scenario, which was the main reason for the introduction of IR35 by the tax authority in the first place.”
HMRC is reported as saying it will ensure no tax is avoided as a result of the arrangement.
