This article has been sent in by an IWW supporter.
‘Tax efficient civil servants’ have hit the headlines this week after
Newsnight revealed that the Chief Executive of the Student
Loans Company, Ed Lester, was avoiding the 50p tax rate.
Rather than paying tax at source like you or I and the rest of the
population with a job, Lester’s £182,000 yearly salary is instead
shoveled in to his own private company and he receives a dividend
taxable at only 21% corporation tax rather than the 50p high earners
tax rate. A nice little earner if you can get it.
But don’t run away with the idea that this sharp practice is confined
to well-connected high flyers in Westminster. Here in Bristol at the
city council senior officers are running exactly the same scam.
Step forward HR Director Mike Watts, responsible for around 10,000
local authority employees all signed up to a PAYE scheme overseen by
Watts and paying their tax at source without choice.
Meanwhile, Watts doesn’t actually bother appearing anywhere on his own
payroll system. Instead payments amounting to around £120k a year are
made to his company Capability & Performance Improvement Ltd,
conveniently enabling him to pay tax at 21% rather than 50%.
This has saved this hard-up worker around £30k so far – more money
than most of the households that this so-called public servant works
for actually have coming in.
Questions are also being asked about the payment
arrangements of Bristol City Council’s former Deputy Chief Executive,
Jon “fat copper” House.
House, a former police inspector, trousered around £150k a year for a
couple of years in Bristol after he was recruited from West Yorkshire
police by the city’s Chief Executive Jan Ormondroyd as some kind of
hard man enforcer figure around Bristol’s Council House.
Alas, after squandering a six-figure sum on setting up a TV screen in Queen Square to watch the 2010 World
Cup and seeing his hard man image crumble to useless farce figure on
first contact with members of Bristol’s IWW, the fat copper was
quietly shunted over the water to Cardiff to play at being Chief Exec
We’ll let you know what our enquiries uncover …