Congratulations to HMRC's ex Chief Information Officer, Deepak Singh, who according to ifaonline was paid £149,500 by HMRC to work three months (June 2009 - September 2009) after his leaving date. Singh's 3 year (£160K per annum) contract ended in June last year.
However, HMRC persuaded him to stay on for another 3 months in the guise of his consulting company Orwell Consulting.
In the private sector, when headcounts are being reduced, a well known "fiddle" is to sack someone then rehire them as a consultant (thus avoiding them appearing in the headcount figures).
Needless to say, I am sure that this was not the intention or the case here.
One rather nice little benefit for Singh of this arrangement, is that he is only liable for corporation tax of up to 28% on his earnings for these 3 months, compared with the higher-rate of income tax of 40%.
I have no problem with tax avoidance. However, HMRC claims that it disapproves of it (when dealing with non HMRC staff).
Tax does have to be taxing.
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I hope HMRC make sure he pays his tax and NI on this under IR35!
ReplyDeleteThis is not the first time HMRC has re-hired someone under this arrangement. There are questions beyond the issue of tax. For example what does it say about their succession planning - i.e. why let anyone go before securing and training a replacement? Why allow the department to become so dependent upon one person? Did he not have a deputy who could stand in - if only for a temporary period?
ReplyDeleteAs ususal the management board - all twenty or so of them - have shown their ability. Piss up in a brewery anyone?
Deepak Singh is also shown as receiving a massive £19,500 Bemefit in Kind listed (in part) as for Outplacement Services - wtf is that all about?
ReplyDeleteAny help?
27 July 2010 17:26, If you have access to data and it looks fraudulant maybe you should pass the details to the police.
ReplyDeleteI did a bit of work there for a while. Hopeless, this bloke was. Spent more time outside 100 Parliament Street smoking than doing any real work at all.
ReplyDeleteJust think of the mess HMRC would be in now if he did not smoke!!!!
ReplyDeleteOrwell Consulting indeed... how apt!!! HMRC is indeed an Orwellian nightmare!
ReplyDeleteSo who did Deepak Singh sleep with to get this agreement?
ReplyDelete"who did Deepak Singh sleep with....?"
ReplyDeleteWhy not send him an email to ask?
According to Ken's super duper upto date email address list (in the next article) he actually still works in the dept....