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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