Further Scrutiny for Public Sector Contractors

Government ministers are being urged to probe into government contractors who may be avoiding tax. This follows on from government attempts to clamp down on tax evasion following negative press over Jimmy Carr’s offshore tax avoidance scheme and the scandal over public sector workers being paid through personal service companies earlier in the year.  

The government is being urged to undertake an urgent review of the tax affairs of its major contractors and suppliers to ensure they are paying their fair share of taxes. The UK deficit rose in July and the government is facing a crisis by not having enough tax revenue to fund its expenditure. Clamp downs on tax evasion are now high on the agenda and companies would be advised to make sure they file their returns on time to reduce the likelihood of being placed under scrutiny. 

Government contractors will be affected as the UK government is likely to review its procurement procedures and consider whether its suppliers are paying their taxes.