The Treasury has fined UK Export Finance half a million pounds for failing to comply with rules designed to stop staff being paid “off the books”.
Ministers brought in measures in 2012 aimed at ending the payment of public sector workers through service companies, amid concern "off-payroll" activity could allow staff to reduce their tax bill by being designated as contractors.
The fine for UK Export Finance, which acts as Britain’s export credit agency, follows similar charges for the Department of Health and Ministry of Defence announced earlier this month by chief secretary to the Treasury Danny Alexander.
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At the time those fines were announced, Alexander said he had also asked the Treasury's permanent secretary Nicholas Macpherson to carry out an audit of UKFE's payroll practices.
In a written statement published this afternoon, Alexander said the audit had concluded that off-payroll guidance had not been "properly implemented" at UKEF.
"As a result I shall be issuing a fine against UK Export Finance of £500,000 for breaches of the guidance which involve the failure to seek proper assurance regarding the tax arrangements of a number of individuals.
He added: "While the vast majority of off-payroll contracts are in place for legitimate reasons, I am committed to ensuring that the public sector demonstrates the highest standards of integrity in this area and that public sector employers meet all their tax obligations. The Treasury will continue to monitor compliance to ensure this is the case."