HM Treasury Releases Details of Arrangements for Tax Review of Public Sector Contractors

HM Treasury Releases Details of Arrangements for Tax Review of Public Sector Contractors PR Newswire CHESTER, England, September 7, 2012 CHESTER, England, September 7, 2012 /PRNewswire/ -- Following a spate of high-profile cases in the media, HM Treasury has been considering how to review the tax arrangements of public sector contractors and has released details of its proposals. Under the measures released, all public sector client organisations are required to obtain certain information about the tax affairs of certain contractors that they engage. This can be directly and also applies to contractors who are engaged through third parties (such as recruitment agencies), to public sector clients and to contractors who: Are engaged in the most senior positions within the department, or Are paid more than £220 per day by their public sector client, and are engaged for more than six months (commencing on 23 August 2012). These measures will also interest contractors who are considering undertaking work with a public sector client in the future, as they may affect key considerations for the contract (such as the length of engagement or the role to be fulfilled). These new developments require Government departments to: 1. Ensure that people engaged in senior positions are on payroll (unless there are exceptional circumstances lasting no more than six months), or 2.