Whitehall departments are picking up the tax bills for perks such as official cars, first-class rail travel and rent-free accommodation.
The arrangements, which were described by tax advisers as “highly unusual”, were made between government departments and the taxman as part of a deal agreed more than a decade ago.
The effect of the deal is to increase the value of officials’ pay packages by up to £30,000 a year at the expense of taxpayers.
Those who benefited from the scheme include Sir Jeremy Heywood, the Cabinet Secretary; Sir David Nicholson, the head of NHS England; and Phillippa Williamson, the former head of the Serious Fraud Office.
Richard Bacon, a Conservative member of the public accounts committee, said he was “concerned” that officials are being given tax-free benefits while members of the public have to pay the taxman for theirs. Read on and comment » | Robert Watts, and Steven Swinford | Friday, August 16, 2013
