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Use of Contractors that have used Disguised Remuneration Schemes
Source: WhatDoTheyKnow
Authority: HM Treasury
Status: The request was
refused
by
HM Treasury
.
Imported path: /opt/loancharge/imports/wdtk/requests/use_of_contractors_that_have_use
Open original request on WhatDoTheyKnow
Imported text
SOURCE: WhatDoTheyKnow
SOURCE_URL: https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use
TITLE: Use of Contractors that have used Disguised Remuneration Schemes
AUTHORITY: HM Treasury
AUTHORITY_URL: https://www.whatdotheyknow.com/body/hm_treasury
STATUS: The request was
refused
by
HM Treasury
.
REQUEST_SLUG: use_of_contractors_that_have_use
CAPTURED_AT: 2026-05-19T07:20:55+00:00
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ATTACHMENTS:
- FOI2020_42887_Reply.pdf | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1695243/attach/3/FOI2020%2042887%20Reply.pdf?cookie_passthrough=1 | application/pdf | 73786 bytes
- [not downloaded] | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1695243/attach/html/3/FOI2020%2042887%20Reply.pdf.html | | 0 bytes
- FOI2020_46506_Reply.pdf | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1709575/attach/3/FOI2020%2046506%20Reply.pdf?cookie_passthrough=1 | application/pdf | 72055 bytes
- [not downloaded] | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1709575/attach/html/3/FOI2020%2046506%20Reply.pdf.html | | 0 bytes
- FOI2020_03467_FOI_response.pdf | https://www.whatdotheyknow.com/request/713163/response/1707233/attach/3/FOI2020%2003467%20FOI%20response.pdf?cookie_passthrough=1 | application/pdf | 165750 bytes
- [not downloaded] | https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/835558/Managing_Public_Money__MPM__with_annexes_2019.pdf | | 0 bytes
- FOI2021_02845_Response.pdf | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1729721/attach/3/FOI2021%2002845%20Response.pdf?cookie_passthrough=1 | application/pdf | 81895 bytes
- [not downloaded] | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1729721/attach/html/3/FOI2021%2002845%20Response.pdf.html | | 0 bytes
- FOI2021_06725_Response.pdf | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1808117/attach/3/FOI2021%2006725%20Response.pdf?cookie_passthrough=1 | application/pdf | 76477 bytes
- [not downloaded] | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1808117/attach/html/3/FOI2021%2006725%20Response.pdf.html | | 0 bytes
- IR2021_15977_IR_Response_Issued_2021_08_25.pdf | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1861953/attach/3/IR2021%2015977%20IR%20Response%20Issued%202021%2008%2025.pdf?cookie_passthrough=1 | application/pdf | 126222 bytes
- [not downloaded] | https://www.whatdotheyknow.com/request/use_of_contractors_that_have_use/response/1861953/attach/html/3/IR2021%2015977%20IR%20Response%20Issued%202021%2008%2025.pdf.html | | 0 bytes
================================================================================
MESSAGE 1 [outgoing]
HEADER: Gary Tinker
23 November 2020
Delivered
--------------------------------------------------------------------------------
Dear Her Majesty's Treasury,
HMRC have recently revealed that they engaged contractors who used "disguised remuneration" (DR) schemes as recently as November 2019.
Please provide the number of contractors engaged by HMT that are
1) currently using DR schemes
2) have been found to be using DR schemes in previous years
3) the number/name of companies that have supplied contractors using DR schemes
Yours faithfully,
Gary Tinker
================================================================================
MESSAGE 2 [incoming]
HEADER: FOI Requests,
HM Treasury
23 November 2020
--------------------------------------------------------------------------------
Thank you for your email. This is an automatic acknowledgement to confirm
that we have received your communication safely. Please do not reply to
this email.
Please note that this mailbox is only for requests made under the Freedom
of Information Act (FOI).
Other enquiries should be sent to the following email address
[1][
email address
]
This email and any files transmitted with it are intended solely for the
use of the individual(s) to whom they are addressed. If you are not the
intended recipient and have received this email in error, please notify
the sender and delete the email. This footnote also confirms that our
email communications may be monitored to ensure the secure and effective
operation of our systems and for other lawful purposes, and that this
email has been swept for malware and viruses.
References
Visible links
1. mailto:[
email address
]
================================================================================
MESSAGE 3 [incoming]
HEADER: eCase@hmtreasury.gov.uk on behalf of FOI Requests,
HM Treasury
23 November 2020
--------------------------------------------------------------------------------
Our ref: FOI2020/42887
Dear Mr Tinker,
Thank you for your request for information which we are considering under
the terms of the Freedom of Information Act 2000.
This is to confirm receipt of your request and to let you know that it is
receiving attention. If you have any enquiries regarding your request do
not hesitate to contact us.
Please note: HM Treasury has a dedicated email address for the public to
make Freedom of Information requests: [
email address
]
Yours sincerely
Information Rights Unit | Correspondence and Information Rights | HM
Treasury, 1 Horse Guards Road, London, SW1A 2HQ [1]www.gov.uk/hm-treasury
Correspondence and Information Rights | HM Treasury, 1 Horse Guards Road,
London, SW1A 2HQ [2]www.gov.uk/hm-treasury
References
Visible links
1.
http://www.gov.uk/hm-treasury
2.
http://www.gov.uk/hm-treasury
================================================================================
MESSAGE 4 [incoming]
HEADER: FOI Requests,
HM Treasury
21 December 2020
--------------------------------------------------------------------------------
1 Attachment
FOI2020 42887 Reply.pdf
72K
View
Download
Dear Mr Tinker
Please find attached a letter in response to your Freedom of Information
request.
Yours sincerely
Information Rights Unit | HM Treasury, 1 Horse Guards Road, London, SW1A
2HQ [1]www.gov.uk/hm-treasury
This email and any files transmitted with it are intended solely for the
use of the individual(s) to whom they are addressed. If you are not the
intended recipient and have received this email in error, please notify
the sender and delete the email. This footnote also confirms that our
email communications may be monitored to ensure the secure and effective
operation of our systems and for other lawful purposes, and that this
email has been swept for malware and viruses.
References
Visible links
1.
http://www.gov.uk/hm-treasury
================================================================================
MESSAGE 5 [outgoing]
HEADER: Gary Tinker
21 December 2020
Delivered
--------------------------------------------------------------------------------
Dear FOI Requests,
Thank you for your response and its clarity.
As suggested in your response, I will narrow the timeframe.
Please can you undertake a search of records to find any contractors that have been found to use disguised remuneration schemes from 2016 to present day.
Thank you
Yours sincerely,
Gary Tinker
================================================================================
MESSAGE 6 [incoming]
HEADER: eCase@hmtreasury.gov.uk on behalf of FOI Requests,
HM Treasury
21 December 2020
--------------------------------------------------------------------------------
Our ref: FOI2020/46506
Dear Mr Tinker,
Thank you for your request for information which we are considering under
the terms of the Freedom of Information Act 2000.
This is to confirm receipt of your request and to let you know that it is
receiving attention. If you have any enquiries regarding your request do
not hesitate to contact us.
Please note: HM Treasury has a dedicated email address for the public to
make Freedom of Information requests: [
email address
]
Yours sincerely
Information Rights Unit | Correspondence and Information Rights | HM
Treasury, 1 Horse Guards Road, London, SW1A 2HQ [1]www.gov.uk/hm-treasury
Correspondence and Information Rights | HM Treasury, 1 Horse Guards Road,
London, SW1A 2HQ [2]www.gov.uk/hm-treasury
References
Visible links
1.
http://www.gov.uk/hm-treasury
2.
http://www.gov.uk/hm-treasury
================================================================================
MESSAGE 7 [incoming]
HEADER: FOI Requests,
HM Treasury
21 January 2021
--------------------------------------------------------------------------------
1 Attachment
FOI2020 46506 Reply.pdf
70K
View
Download
Dear Mr Tinker
Please find attached a letter in response to your Freedom of Information
request.
Yours sincerely
Information Rights Unit | HM Treasury, 1 Horse Guards Road, London, SW1A
2HQ [1]www.gov.uk/hm-treasury
This email and any files transmitted with it are intended solely for the
use of the individual(s) to whom they are addressed. If you are not the
intended recipient and have received this email in error, please notify
the sender and delete the email. This footnote also confirms that our
email communications may be monitored to ensure the secure and effective
operation of our systems and for other lawful purposes, and that this
email has been swept for malware and viruses.
References
Visible links
1.
http://www.gov.uk/hm-treasury
================================================================================
MESSAGE 8 [outgoing]
HEADER: Gary Tinker
23 January 2021
Delivered
--------------------------------------------------------------------------------
Dear FOI Requests,
Thank you for the response to my request.
However, I think that you need to check into it a little further before attempting to pass the problem onto HMRC. The law and regulation, some of it written by HMT stipulates that the public organisation should know the status of its contractors.
“Please can you undertake a search of records to find any contractors that have been found to use disguised remuneration schemes from 2016 to present day.”
Or
Confirm that HMT have broken the law by not knowing whether any of its resources are users of such schemes.
A key paragraph in one of the documents referred to below :-
"All government departments and their arm’s length bodies which employ appointees ‘off payroll’ for more than six months have to report to the Treasury about the financial arrangement, to make sure it is transparent and that the appointee in question are paying the right amount of tax and National Insurance."
You may also want to read the response to an FOI raised to HMRC
https://www.whatdotheyknow.com/request/7...
It stated amongst other things the following:-
---------------------------------------------------------------------------------------------------
On 31 January 2012, the Chief Secretary to the Treasury announced a review of the tax arrangements of public sector appointees. The aim of the review was to ascertain the extent of arrangements which could allow public sector appointees to minimise their tax payments, and to make appropriate recommendations.
The review considered the different categories of public sector off-payroll engagements and their associated levels of tax avoidance risk. HM Treasury subsequently introduced a set of rules which required the most senior staff to be on the payroll, unless there are exceptional temporary circumstances. For long-term contractors, employers were required to include contractual provisions to ensure that income tax and National Insurance Contributions (NICs) obligations are being met and allow departments to terminate the contract if assurance is not received when sought.
All government departments and their arm’s length bodies which employ appointees ‘off payroll’ for more than six months have to report to the Treasury about the financial arrangement, to make sure it is transparent and that the appointee in question are paying the right amount of tax and National Insurance. Details of the assurance undertaken by HMRC is available in the department’s Annual Reports and Accounts.
For short-term contractors it is for departments to determine where contractual provisions and assurance were appropriate.
Further details of the assurance undertaken is available in Procurement Policy Note – Tax Arrangements of Public Appointees. Compliance is monitored through an annual review, the results of which were presented to Parliament by the Chief Secretary to the Treasury in a Written Ministerial Statement. Sanctions were considered on a case-by-case basis where a department was found to be in breach of the rules.
----------------------------------------------------------------------------------------------------------
Further to this FOI
You will also find the document
Managing Public Money, published by HMT
https://assets.publishing.service.gov.uk...
----------------------------------------------------------------------------------------------------------
5.6.1 Public sector organisations should not engage in, or connive at, tax evasion, tax avoidance or tax planning. If a public sector organisation were to obtain financial advantage by moderating the tax paid by a contractor, supplier or other counterparty, it would usually mean that the Exchequer as a whole would be worse off – thus conflicting with the accounting officer’s duties (section 3.3). Thus artificial tax avoidance schemes should normally be rejected. It should be standard practice to consult HMRC3 about transactions involving non-standard approaches to tax before going ahead.
----------------------------------------------------------------------------------------------------------
This document also contains a link
---------------------------------------------------------------------------------------------------------
Section A4.6.19
HM Revenue and Customs on tax avoidance issues
(
http://www.hmrc.gov.uk/avoidance/
)
Yours sincerely,
Gary Tinker
================================================================================
MESSAGE 9 [incoming]
HEADER: FOI Requests,
HM Treasury
25 January 2021
--------------------------------------------------------------------------------
Dear Mr Tinker
Thank you for your email regarding your request for an internal review.
I can confirm that your review request was received on 23 January and is
receiving attention under our reference IR2021/02613.
There is no statutory deadline for responding to internal review requests.
However, in line with the Information Commissioner’s guidelines and the
2018 FOI Code of Practice, we aim to complete internal reviews within 20
working days.
Yours sincerely
Information Rights Unit | Correspondence and Information Rights | HM
Treasury, 1 Horse Guards Road, London, SW1A 2HQ
[1]www.gov.uk/hm-treasury
show quoted sections
================================================================================
MESSAGE 10 [outgoing]
HEADER: Gary Tinker
26 January 2021
Delivered
--------------------------------------------------------------------------------
Dear FOI Requests,
I note that HMT have changed the state of this FOI into an internal review of the FOI raised
I do not believe I requested an internal review.
I asked for the question to be answered as at this time HMT has not answered the question raised
Yours sincerely,
Gary Tinker
================================================================================
MESSAGE 11 [incoming]
HEADER: FOI Requests,
HM Treasury
26 January 2021
--------------------------------------------------------------------------------
Dear Mr Tinker
Thank you for your request for information which we are considering under
the terms of the Freedom of Information Act 2000.
This is to confirm receipt of your request and to let you know that it is
receiving attention under reference FOI2021/02845.
Thank you also for your follow up email of 26 January at 10:11am advising
us that you do not wish us to conduct an Internal Review.
If you have any enquiries regarding your request do not hesitate to
contact us.
Please note: HM Treasury has a dedicated email address for the public to
make Freedom of Information requests: [1][
email address
]
Yours sincerely
Information Rights Unit | Correspondence and Information Rights | HM
Treasury, 1 Horse Guards Road, London, SW1A 2HQ
[2]www.gov.uk/hm-treasury
show quoted sections
================================================================================
MESSAGE 12 [incoming]
HEADER: FOI Requests,
HM Treasury
19 February 2021
--------------------------------------------------------------------------------
1 Attachment
FOI2021 02845 Response.pdf
79K
View
Download
Dear Mr Tinker
Please find attached HM Treasury’s response to your information request.
Yours sincerely
Information Rights Unit | Correspondence and Information Rights Team | HM
Treasury, 1 Horse Guards Road, London, SW1A
2HQ | [1]www.gov.uk/hm-treasury
This email and any files transmitted with it are intended solely for the
use of the individual(s) to whom they are addressed. If you are not the
intended recipient and have received this email in error, please notify
the sender and delete the email. This footnote also confirms that our
email communications may be monitored to ensure the secure and effective
operation of our systems and for other lawful purposes, and that this
email has been swept for malware and viruses.
References
Visible links
1.
http://www.gov.uk/hm-treasury
================================================================================
MESSAGE 13 [outgoing]
HEADER: Gary Tinker
20 February 2021
Delivered
--------------------------------------------------------------------------------
Dear FOI Requests,
Thank you for your latest response to my FOI, but it does not answer the question.
By law, HMT , as a public sector organisation must ensure that contractors,contingent labour,off-payroll resources are not using tax avoidance schemes. This includes ensuring that the third party agency supplies resources that are compliant with that regulation. I have provided links in my previous request that point out these regulations
I have examined the HMT annual report and can see that there are a significant number of off-payroll engagements. I can also see that HMT have sought assurance from off-payroll resources regarding their tax arrangements in years 2011/12, but it appears that such checks or assurances have not been sought other than to check IR35 status since 2017/18
In that respect, by law, HMT must know the answer to the question.
It is not acceptable (and breaking the law) to say that HMT does not hold this information.
It is the law that HMT must hold this data.
Please provide the requested information.
Namely
The number of contractors engaged by HMT that are
1) currently using DR schemes
2) have been found to be using DR schemes in previous years
3) the number/name of companies that have supplied contractors using DR schemes
Yours sincerely,
Gary Tinker
================================================================================
MESSAGE 14 [incoming]
HEADER: eCase@hmtreasury.gov.uk on behalf of FOI Requests,
HM Treasury
22 February 2021
--------------------------------------------------------------------------------
Our ref: FOI2021/06725
Dear Mr Tinker,
Thank you for your request for information which we are considering under
the terms of the Freedom of Information Act 2000.
This is to confirm receipt of your request and to let you know that it is
receiving attention. If you have any enquiries regarding your request do
not hesitate to contact us.
Please note: HM Treasury has a dedicated email address for the public to
make Freedom of Information requests: [
email address
]
Yours sincerely
Information Rights Unit | Correspondence and Information Rights | HM
Treasury, 1 Horse Guards Road, London, SW1A 2HQ [1]www.gov.uk/hm-treasury
Correspondence and Information Rights | HM Treasury, 1 Horse Guards Road,
London, SW1A 2HQ [2]www.gov.uk/hm-treasury
References
Visible links
1.
http://www.gov.uk/hm-treasury
2.
http://www.gov.uk/hm-treasury
================================================================================
MESSAGE 15 [outgoing]
HEADER: Gary Tinker
21 April 2021
Delivered
--------------------------------------------------------------------------------
Dear [
email address
] on behalf of FOI Requests,
This request is now very overdue.
Please provide the information requested
Thanks
Yours sincerely,
Gary Tinker
================================================================================
MESSAGE 16 [outgoing]
HEADER: Gary Tinker
12 May 2021
Delivered
--------------------------------------------------------------------------------
Dear [
email address
] on behalf of FOI Requests,
Your last response to this FOI was on the 22/2/2021 making a response extremely overdue
Please advise when the request will receive a response.
Yours sincerely,
Gary Tinker
================================================================================
MESSAGE 17 [incoming]
HEADER: FOI Requests,
HM Treasury
8 June 2021
--------------------------------------------------------------------------------
1 Attachment
FOI2021 06725 Response.pdf
74K
View
Download
Dear Mr Tinker
Please find attached HM Treasury’s response.
Yours sincerely
Information Rights Unit | Correspondence and Information Rights Team | HM
Treasury, 1 Horse Guards Road, London, SW1A
2HQ | [1]www.gov.uk/hm-treasury
This email and any files transmitted with it are intended solely for the
use of the individual(s) to whom they are addressed. If you are not the
intended recipient and have received this email in error, please notify
the sender and delete the email. This footnote also confirms that our
email communications may be monitored to ensure the secure and effective
operation of our systems and for other lawful purposes, and that this
email has been swept for malware and viruses.
References
Visible links
1.
http://www.gov.uk/hm-treasury
================================================================================
MESSAGE 18 [outgoing]
HEADER: Gary Tinker
9 June 2021
Delivered
--------------------------------------------------------------------------------
Dear Her Majesty's Treasury,
Please pass this on to the person who conducts Freedom of Information reviews.
I am writing to request an internal review of Her Majesty's Treasury's handling of my FOI request 'Use of Contractors that have used Disguised Remuneration Schemes'.
I am confused and do not accept that HMT have responded correctly to this FOI request.
In your response on the 21/12/2020 you stated that
I can confirm that HM Treasury holds some information within the scope of your request.
In your response on the 21/01/2021 you stated that
We can confirm that HM Treasury does not hold information within the scope of your
request.
In this latest response dated 8/6/2021 you have stated
We can confirm that HM Treasury does not hold information within the scope of your
request
So part way through this request HMT decided that it no longer had data in scope. This is quite odd, is it possible to explain?
You stated the following
"HM Treasury uses the pan Government Public Sector Resourcing framework agreement to
source and procure contingent labour. This framework agreement was established in
January 2018. The contractual arrangements that cover this agreement are such that no
contingent labour procured through this route are paid using a disguised remuneration
scheme."
HMRC also use the Government Public Sector Resourcing framework and identified as late as July 2020 that it was using contractors that were using tax avoidance schemes.
The law makes it clear that the public body must ensure that its suppliers and resources have not used avoidance schemes. It is not acceptable to hide behind the argument that only HMRC could know this.
However your department should be congratulated on one level of honesty that exceeds that of HMRC in concluding that don't know means 'don't know', even if that is breaking the law that HMT itself helped formulate. In comparison HMRC stated in 2018 that they did not know how many contractors had used tax avoidance schemes and from not knowing the answer stated the number to be nil. Clearly illogical. However after several further FOI requests they finally told the truth and admitted knowing of at least 13.
Is it a fact then that every other public body other than HMRC is exempt from the law as formulated by HMT in 2012 on the grounds that they cannot know the answer to the question of whether their suppliers or contingent labour has or is using a tax avoidance scheme?
I think that HMT needs to consider sanctions on itself as it has not complied with the law that the Chief Secretary to the Treasury announced on 31/1/2012. Please state why HMT should not report itself.
There also remains a gap between 2016 and 2018 where HMT was engaging contingent labour and suppliers that may have been using tax avoidance schemes. I will ask one last time for HMT to confirm that it did not engage suppliers or contingent labour using tax avoidance schemes post 2016. It is worth pointing out that under section 77 of the FOIA it a criminal offence for a person to do anything with the intention of preventing the disclosure of information pursuant to an FOI request.
A full history of my FOI request and all correspondence is available on the Internet at this address:
https://www.whatdotheyknow.com/request/u...
Yours faithfully,
Gary Tinker
================================================================================
MESSAGE 19 [incoming]
HEADER: FOI Requests,
HM Treasury
9 June 2021
--------------------------------------------------------------------------------
Dear Gary Tinker,
Thank you for your email regarding your request for an internal review.
I can confirm that your review request was received on 9 June 2021 and is
receiving attention under our reference IR2021/15977.
There is no statutory deadline for responding to internal review
requests.
However, in line with the Information Commissioner’s guidelines and the
2018 FOI Code of Practice, we aim to complete internal reviews within 20
working days.
Yours sincerely
Information Rights Unit | Correspondence and Information Rights | HM
Treasury, 1 Horse Guards Road, London, SW1A 2HQ
[1]www.gov.uk/hm-treasury
This email and any files transmitted with it are intended solely for the
use of the individual(s) to whom they are addressed. If you are not the
intended recipient and have received this email in error, please notify
the sender and delete the email. This footnote also confirms that our
email communications may be monitored to ensure the secure and effective
operation of our systems and for other lawful purposes, and that this
email has been swept for malware and viruses.
References
Visible links
1.
http://www.gov.uk/hm-treasury
================================================================================
MESSAGE 20 [outgoing]
HEADER: Gary Tinker
4 August 2021
Delivered
--------------------------------------------------------------------------------
Dear FOI Requests,
Please can you provide an update when this internal review will be complete.
It is now around 40 days since your last update.
You had suggested an aim to deliver a response within 20 days
Yours sincerely,
Gary Tinker
================================================================================
MESSAGE 21 [incoming]
HEADER: FOI Requests,
HM Treasury
5 August 2021
--------------------------------------------------------------------------------
Dear Mr Tinker,
Please accept our apologies for the delay in responding to your request
for an internal review.
We always aim to respond to internal review requests within 20 working
days.
Unfortunately, in this case we have not been able to.
We would like to assure you that your request is receiving attention and
we will provide a response as soon as possible.
Unfortunately, we are not able to give you a firm date.
Yours sincerely,
Information Rights Unit
show quoted sections
================================================================================
MESSAGE 22 [incoming]
HEADER: FOI Requests,
HM Treasury
25 August 2021
--------------------------------------------------------------------------------
1 Attachment
IR2021 15977 IR Response Issued 2021 08 25.pdf
123K
View
Download
Dear Mr Gary Tinker
Please find attached a response to your recent IR request.
Kind regards
Information Rights Unit
| HM Treasury | Ground Orange | 1 Horse Guards Road, SW1A 2HQ |
[1]www.gov.uk/hm-treasury
References
Visible links
1.
http://www.gov.uk/hm-treasury
================================================================================
MESSAGE 23 [outgoing]
HEADER: Gary Tinker
25 August 2021
Delivered
--------------------------------------------------------------------------------
Dear FOI Requests,
Thank you for the internal review which unsurprisingly finds that HMT responded correctly to this FOI request.
A complaint will be lodged with the ICO on the following grounds :-
1) HMT did not supply the information requested
2) HMT by law must have this information. If it does not then it has broken the law. (Oddly the law that HMT itself drafted)
3) The Pan Government Framework started in 2018 but that still does not answer the questions raised which cover outside this period anyway.
4) HMT broke every timeframe guideline in the FOIA that it could have done in taking 9 months to respond and the conclusion is that it isn't going to provide the information.
5) It doesn't even pay lip service to the FOIA. It is certainly operating outside the law and not operating in the way Parliament intended.
I think the fact that HMT are breaking the laws that it itself created should mean that this will also need to be heard by the tribunal governing the act.
Yours sincerely,
Gary Tinker
================================================================================
ATTACHMENT TEXT EXTRACTION / OCR
================================================================================
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ATTACHMENT: FOI2020_03467_FOI_response.pdf
TEXT_FILE: FOI2020_03467_FOI_response.pdf.txt
METHOD: pdf_native
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PAGES: 2
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--- PDF page 1 ---
Information is available in large print, audio and Braille formats.
Text Relay service prefix number – 18001
Freedom of Information Team
S1715
6 Floor
Central Mail Unit
Newcastle Upon Tyne
NE98 1ZZ
Mr Trew Ray
By email: request-713163-
c6be744c@whatdotheyknow.com
Email
foi.request@hmrc.gov.uk
Web
www.gov.uk
Date: 18 January 2021
Our ref:
FOI2020/03467
Dear Mr Ray,
Freedom of Information Act 2000 (FOIA)
Thank you for your request, which was received on 15 December, for the following
information:
“For the years between 2010-2016, what compliance checks were carried out for contractor
engagements? Where and how did HMRC record departmental contractor engagements?”
During this period, as now, the engagement and tax obligations of public sector
engagements were considered under the Managing Public Money framework
(MPM).
Under MPM, departments are unable to engage individuals where they suspect that the
individual is avoiding tax. However, contracts prior to 2012 did not give departments the right
to request detailed tax assurance from individuals. HMRC covered as much due diligence as
possible to ensure that it gained assurance from agencies/suppliers that they were
complying with all necessary tax laws and legislation.
On 31 January 2012, the Chief Secretary to the Treasury announced a review of the tax
arrangements of public sector appointees. The aim of the review was to ascertain the extent
of arrangements which could allow public sector appointees to minimise their tax payments,
and to make appropriate recommendations.
The review considered the different categories of public sector off-payroll engagements and
their associated levels of tax avoidance risk. HM Treasury subsequently introduced a set of
rules which required the most senior staff to be on the payroll, unless there are exceptional
temporary circumstances. For long-term contractors, employers were required to include
contractual provisions to ensure that income tax and National Insurance Contributions
(NICs) obligations are being met and allow departments to terminate the contract if
assurance is not received when sought.
All government departments and their arm’s length bodies which employ appointees ‘off
payroll’ for more than six months have to report to the Treasury about the financial
arrangement, to make sure it is transparent and that the appointee in question are paying
the right amount of tax and National Insurance. Details of the assurance undertaken by
HMRC is available in the department’s Annual Reports and Accounts.
--- PDF page 2 ---
2
OFFICIAL
For short-term contractors it is for departments to determine where contractual provisions
and assurance were appropriate.
Further details of the assurance undertaken is available in Procurement Policy Note – Tax
Arrangements of Public Appointees.
Compliance is monitored through an annual review, the results of which were presented to
Parliament by the Chief Secretary to the Treasury in a Written Ministerial Statement.
Sanctions were considered on a case-by-case basis where a department was found to be in
breach of the rules.
The definition of these categories and HMT’s rules were updated as of 6 April 2017,
following reforms to wider Government measures in the public sector.
With regards to records of departmental engagements, I can advise that HMRC has
maintained a central record of these from 2016 to present. This record was created in
response to an internal review which stipulated that the department should have a central
record of all contractors on site for monitoring purposes and to assist with the
implementation of the proposed changes to the Intermediaries Legislation.
Prior to this date, details of engagements were maintained by individual hiring managers and
Finance Directors within the HMRC directorates to which the worker would be providing their
services.
If you are not satisfied with this reply you may request a review within two months by
emailing foi.review@hmrc.gov.uk, or by writing to the address at the top right-hand side of
this letter.
If you are not content with the outcome of an internal review you can complain to the
Information Commissioner’s Office.
Yours sincerely,
HM Revenue and Customs
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ATTACHMENT: FOI2020_42887_Reply.pdf
TEXT_FILE: FOI2020_42887_Reply.pdf.txt
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Information Rights Unit
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ
Mr Gary Tinker
Dear Mr Tinker
020 7270 5000
foirequests@hmtreasury.gov.uk
www.gov.uk/hm-treasury
21 December 2020
Ref: FOI2020/42887
Freedom of Information Act 2000
Thank you for your enquiry of 23 November 2020, which we have considered under the
terms of the Freedom of Information Act 2000 (the FOI Act).
You asked for the following information:
“HMRC have recently revealed that they engaged contractors who used "disguised
remuneration" (DR) schemes as recently as November 2019.
Please provide the number of contractors engaged by HMT that are
1) currently using DR schemes
2) have been found to be using DR schemes in previous years
3) the number/name of companies that have supplied contractors using DR
schemes”
I can confirm that HM Treasury holds some information within the scope of your request.
There are currently no interim staff, otherwise defined as contingent labour, engaged by
HM Treasury being paid through disguised remuneration schemes.
To determine whether other information in scope of your request is available would
require extensive searches of individual procurements and their underlying records over an
unspecified timeframe. We estimate that to search for and locate any information held
would exceed the appropriate limit. The appropriate limit for central Government is set at
£600. In this case, this represents the estimated cost of one person spending three and a
half working days in determining whether the department holds the information.
Under section 12 of the FOI Act, departments are not obliged to comply with requests in
these circumstances. It may be that if you were to amend your request, for example, by
narrowing its focus to a specific timeframe, we may be able to comply with a future
request. However, I cannot guarantee that this would be the case.
If you have any queries about this letter, please contact us. Please quote the reference
number above in any future communications.
Yours sincerely
Information Rights Unit
--- PDF page 2 ---
Copyright notice
Most documents HM Treasury supplies in response to a Freedom of Information request,
including this letter, continue to be protected by Crown copyright. This is because they will
have been produced by Government officials as part of their work. You are free to use
these documents for your information, for any non-commercial research you may be doing
and for news reporting. Any other re-use, for example commercial publication, will require
the permission of the copyright holder. Crown copyright is managed by The National
Archives and you can find details on the arrangements for re-using Crown copyright
material at: http://www.nationalarchives.gov.uk/information-management/re-using-public-
sector-information/uk-government-licensing-framework/crown-copyright/
Your right to complain under the Freedom of Information Act 2000
If you are not happy with this reply, you can request a review by writing to HM Treasury,
Information Rights Unit, 1 Horse Guards Road, London SW1A 2HQ or by emailing us at the
address below. Any review request must be made within 40 working days of the date of
this letter.
Email: foirequests@hmtreasury.gov.uk
It would assist our review if you set out which aspects of the reply concern you and why
you are dissatisfied.
If you are not content with the outcome of the review, you may apply directly to the
Information Commissioner for a decision. Generally, the Commissioner will not make a
decision unless you have exhausted the complaints procedure provided by HM Treasury
which is outlined above.
The Information Commissioner can be contacted at: The Information Commissioner’s
Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF (or via their website at:
https://ico.org.uk).
--------------------------------------------------------------------------------
ATTACHMENT: FOI2020_46506_Reply.pdf
TEXT_FILE: FOI2020_46506_Reply.pdf.txt
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Information Rights Unit
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ
Mr Gary Tinker
Dear Mr Tinker
020 7270 5000
foirequests@hmtreasury.gov.uk
www.gov.uk/hm-treasury
21 January 2021
Ref: FOI2020/46506
Freedom of Information Act 2000: Disguised Remuneration
Schemes
Thank you for your enquiry of 21 December 2021, which we have considered under the
terms of the Freedom of Information Act 2000 (the FOI Act).
You asked for the following information:
“Please can you undertake a search of records to find any contractors that have
been found to use disguised remuneration schemes from 2016 to present day.”
We can confirm that HM Treasury does not hold information within the scope of your
request.
To comprehensively identify whether any contingent labour procured by HM Treasury since
2016 has been paid through a disguised remuneration scheme would require access to
records held by HM Revenue & Customs (HMRC). These are not available to HM Treasury
due to HMRC’s duty of confidentiality.
If you have any queries about this letter, please contact us. Please quote the reference
number above in any future communications.
Yours sincerely
Information Rights Unit
--- PDF page 2 ---
Copyright notice
Most documents HM Treasury supplies in response to a Freedom of Information request,
including this letter, continue to be protected by Crown copyright. This is because they will
have been produced by Government officials as part of their work. You are free to use
these documents for your information, for any non-commercial research you may be doing
and for news reporting. Any other re-use, for example commercial publication, will require
the permission of the copyright holder. Crown copyright is managed by The National
Archives and you can find details on the arrangements for re-using Crown copyright
material at: http://www.nationalarchives.gov.uk/information-management/re-using-public-
sector-information/uk-government-licensing-framework/crown-copyright/
Your right to complain under the Freedom of Information Act 2000
If you are not happy with this reply, you can request a review by writing to HM Treasury,
Information Rights Unit, 1 Horse Guards Road, London SW1A 2HQ or by emailing us at the
address below. Any review request must be made within 40 working days of the date of
this letter.
Email: foirequests@hmtreasury.gov.uk
It would assist our review if you set out which aspects of the reply concern you and why
you are dissatisfied.
If you are not content with the outcome of the review, you may apply directly to the
Information Commissioner for a decision. Generally, the Commissioner will not make a
decision unless you have exhausted the complaints procedure provided by HM Treasury
which is outlined above.
The Information Commissioner can be contacted at: The Information Commissioner’s
Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF (or via their website at:
https://ico.org.uk).
--------------------------------------------------------------------------------
ATTACHMENT: FOI2021_02845_Response.pdf
TEXT_FILE: FOI2021_02845_Response.pdf.txt
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Information Rights Unit
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ
Mr Gary Tinker
Dear Mr Tinker
020 7270 5000
foirequests@hmtreasury.gov.uk
www.gov.uk/hm-treasury
19 February 2021
Ref: FOI2021/02845
Freedom of Information Act 2000
Thank you for your enquiry of 23 January 2021, which we have considered under the
terms of the Freedom of Information Act 2000 (the FOI Act).
You asked for the following information:
“Thank you for the response to my request. However, I think that you need to
check into it a little further before attempting to pass the problem onto HMRC. The
law and regulation, some of it written by HMT stipulates that the public
organisation should know the status of its contractors.
“Please can you undertake a search of records to find any contractors that have
been found to use disguised remuneration schemes from 2016 to present day.”
Or
Confirm that HMT have broken the law by not knowing whether any of its
resources are users of such schemes.
A key paragraph in one of the documents referred to below :-
"All government departments and their arm’s length bodies which employ
appointees ‘off payroll’ for more than six months have to report to the Treasury
about the financial arrangement, to make sure it is transparent and that the
appointee in question are paying the right amount of tax and National Insurance."
You may also want to read the response to an FOI raised to HMRC
https://www.whatdotheyknow.com/request/713163/response/1707233/attach/3/FO
I2020%2003467%20FOI%20response.pdf?cookie_passthrough=1
It stated amongst other things the following:-
---------------------------------------------------------------------------------------------------
On 31 January 2012, the Chief Secretary to the Treasury announced a review of the
tax arrangements of public sector appointees. The aim of the review was to
ascertain the extent of arrangements which could allow public sector appointees to
minimise their tax payments, and to make appropriate recommendations.
The review considered the different categories of public sector off-payroll
engagements and their associated levels of tax avoidance risk. HM Treasury
subsequently introduced a set of rules which required the most senior staff to be
on the payroll, unless there are exceptional temporary circumstances. For long-term
contractors, employers were required to include contractual provisions to ensure
that income tax and National Insurance Contributions (NICs) obligations are being
--- PDF page 2 ---
met and allow departments to terminate the contract if assurance is not received
when sought.
All government departments and their arm’s length bodies which employ
appointees ‘off payroll’ for more than six months have to report to the Treasury
about the financial arrangement, to make sure it is transparent and that the
appointee in question are paying the right amount of tax and National Insurance.
Details of the assurance undertaken by HMRC is available in the department’s
Annual Reports and Accounts.
For short-term contractors it is for departments to determine where contractual
provisions and assurance were appropriate.
Further details of the assurance undertaken is available in Procurement Policy Note
– Tax Arrangements of Public Appointees. Compliance is monitored through an
annual review, the results of which were presented to Parliament by the Chief
Secretary to the Treasury in a Written Ministerial Statement. Sanctions were
considered on a case-by-case basis where a department was found to be in breach
of the rules.
Further to this FOI
You will also find the document
Managing Public Money, published by HMT
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attach
ment_data/file/835558/Managing_Public_Money__MPM__with_annexes_2019.pdf
5.6.1 Public sector organisations should not engage in, or connive at, tax evasion,
tax avoidance or tax planning. If a public sector organisation were to obtain
financial advantage by moderating the tax paid by a contractor, supplier or other
counterparty, it would usually mean that the Exchequer as a whole would be worse
off – thus conflicting with the accounting officer’s duties (section 3.3). Thus
artificial tax avoidance schemes should normally be rejected. It should be standard
practice to consult HMRC3 about transactions involving non-standard approaches
to tax before going ahead.
This document also contains a link
Section A4.6.19
HM Revenue and Customs on tax avoidance issues
(http://www.hmrc.gov.uk/avoidance/)”
We can confirm that HM Treasury does not hold information within the scope of your
request.
HM Treasury reimburses the 3rd party supplier responsible for resourcing our departmental
contingent labour needs rather than through a direct arrangement with the individuals
themselves. For example, when using our call-off contract from the Public Sector
Resourcing framework agreement. To have complete visibility of the payment
arrangements between a supplier and the interim staff members concerned would require
accessing HM Revenue & Customs’ records, which is not possible for the reason we have
already stated.
Information regarding HM Treasury’s non-payroll staff and details of its off-payroll
transactions can be found in its Annual Report and Accounts.
--- PDF page 3 ---
If you have any queries about this letter, please contact us. Please quote the reference
number above in any future communications.
Yours sincerely
Information Rights Unit
Copyright notice
Most documents HM Treasury supplies in response to a Freedom of Information request,
including this letter, continue to be protected by Crown copyright. This is because they will
have been produced by Government officials as part of their work. You are free to use
these documents for your information, for any non-commercial research you may be doing
and for news reporting. Any other re-use, for example commercial publication, will require
the permission of the copyright holder. Crown copyright is managed by The National
Archives and you can find details on the arrangements for re-using Crown copyright
material at: http://www.nationalarchives.gov.uk/information-management/re-using-public-
sector-information/uk-government-licensing-framework/crown-copyright/
Your right to complain under the Freedom of Information Act 2000
If you are not happy with this reply, you can request a review by writing to HM Treasury,
Information Rights Unit, 1 Horse Guards Road, London SW1A 2HQ or by emailing us at the
address below. Any review request must be made within 40 working days of the date of
this letter.
Email: foirequests@hmtreasury.gov.uk
It would assist our review if you set out which aspects of the reply concern you and why
you are dissatisfied.
If you are not content with the outcome of the review, you may apply directly to the
Information Commissioner for a decision. Generally, the Commissioner will not make a
decision unless you have exhausted the complaints procedure provided by HM Treasury
which is outlined above.
The Information Commissioner can be contacted at: The Information Commissioner’s
Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF (or via their website at:
https://ico.org.uk).
--------------------------------------------------------------------------------
ATTACHMENT: FOI2021_06725_Response.pdf
TEXT_FILE: FOI2021_06725_Response.pdf.txt
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Information Rights Unit
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ
Mr Gary Tinker
Dear Mr Tinker
020 7270 5000
foirequests@hmtreasury.gov.uk
www.gov.uk/hm-treasury
8 June 2021
Ref: FOI2021/06725
Freedom of Information Act 2000
Thank you for your enquiry of 20 February 2021, which we have considered under the
terms of the Freedom of Information Act 2000 (the FOI Act). We apologise for the delay in
providing our response.
You asked for the following information:
“Thank you for your latest response to my FOI, but it does not answer the
question.
By law, HMT, as a public sector organisation must ensure that contractors,
contingent labour, off-payroll resources are not using tax avoidance schemes. This
includes ensuring that the third-party agency supplies resources that are compliant
with that regulation. I have provided links in my previous request that point out
these regulations.
I have examined the HMT annual report and can see that there are a significant
number of off-payroll engagements. I can also see that HMT have sought assurance
from off-payroll resources regarding their tax arrangements in years 2011/12, but it
appears that such checks or assurances have not been sought other than to check
IR35 status since 2017/18.
In that respect, by law, HMT must know the answer to the question. It is not
acceptable (and breaking the law) to say that HMT does not hold this information.
It is the law that HMT must hold this data.
Please provide the requested information.
Namely
The number of contractors engaged by HMT that are
1) currently using DR schemes
2) have been found to be using DR schemes in previous years
3) the number/name of companies that have supplied contractors using DR
schemes”
--- PDF page 2 ---
We can confirm that HM Treasury does not hold information within the scope of your
request.
HM Treasury uses the pan Government Public Sector Resourcing framework agreement to
source and procure contingent labour. This framework agreement was established in
January 2018. The contractual arrangements that cover this agreement are such that no
contingent labour procured through this route are paid using a disguised remuneration
scheme.
To have complete visibility of the payment arrangements across a number of years
between suppliers and interim workers (contingent labour) at the end of potentially multi-
tiered supply chains would require accessing HM Revenue & Customs’ records, which is
not possible for the reason we have already stated.
If you have any queries about this letter, please contact us. Please quote the reference
number above in any future communications.
Yours sincerely
Information Rights Unit
--- PDF page 3 ---
Copyright notice
Most documents HM Treasury supplies in response to a Freedom of Information request,
including this letter, continue to be protected by Crown copyright. This is because they will
have been produced by Government officials as part of their work. You are free to use
these documents for your information, for any non-commercial research you may be doing
and for news reporting. Any other re-use, for example commercial publication, will require
the permission of the copyright holder. Crown copyright is managed by The National
Archives and you can find details on the arrangements for re-using Crown copyright
material at: http://www.nationalarchives.gov.uk/information-management/re-using-public-
sector-information/uk-government-licensing-framework/crown-copyright/
Your right to complain under the Freedom of Information Act 2000
If you are not happy with this reply, you can request a review by writing to HM Treasury,
Information Rights Unit, 1 Horse Guards Road, London SW1A 2HQ or by emailing us at the
address below. Any review request must be made within 40 working days of the date of
this letter.
Email: foirequests@hmtreasury.gov.uk
It would assist our review if you set out which aspects of the reply concern you and why
you are dissatisfied.
If you are not content with the outcome of the review, you may apply directly to the
Information Commissioner for a decision. Generally, the Commissioner will not make a
decision unless you have exhausted the complaints procedure provided by HM Treasury
which is outlined above.
The Information Commissioner can be contacted at: The Information Commissioner’s
Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF (or via their website at:
https://ico.org.uk).
--------------------------------------------------------------------------------
ATTACHMENT: IR2021_15977_IR_Response_Issued_2021_08_25.pdf
TEXT_FILE: IR2021_15977_IR_Response_Issued_2021_08_25.pdf.txt
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PAGES: 4
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1
Information Rights Unit
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ
Mr Gary Tinker
Dear Mr Gary Tinker,
020 7270 5000
foirequests@hmtreasury.gov.uk
www.gov.uk/hm-treasury
25 August 2021
Refs: IR2021/15977
FOI2021/06725
Freedom of Information Act 2000 Internal Review
Thank you for your email dated 9 June 2021, requesting an internal review of our response
dated 8 June 2021 to your information request made under the Freedom of Information
Act 2000 (the FOI Act), under our reference: FOI2021/06725
We have now completed our internal review and this letter informs you of its conclusions.
The review was conducted by officials not involved with your original request.
Background
On 20 February 2021, you made the following request under the FOI Act:
“Thank you for your latest response to my FOI, but it does not answer the question.
By law, HMT, as a public sector organisation must ensure that contractors,
contingent labour, off-payroll resources are not using tax avoidance schemes. This
includes ensuring that the third-party agency supplies resources that are compliant
with that regulation. I have provided links in my previous request that point out
these regulations
I have examined the HMT annual report and can see that there are a significant
number of off-payroll engagements. I can also see that HMT have sought assurance
from off-payroll resources regarding their tax arrangements in years 2011/12, but it
appears that such checks or assurances have not been sought other than to check
IR35 status since 2017/18
In that respect, by law, HMT must know the answer to the question.
It is not acceptable (and breaking the law) to say that HMT does not hold this
information.
It is the law that HMT must hold this data.
Please provide the requested information.
Namely
The number of contractors engaged by HMT that are
--- PDF page 2 ---
2
1) currently using DR schemes
2) have been found to be using DR schemes in previous years
3) the number/name of companies that have supplied contractors using DR schemes”
On 8 June 2021 we provided our response and explained that HM Treasury does not hold
information within scope of your response. HM Treasury uses the pan Government Public
Sector Resourcing framework agreement to source and procure contingent labour. This
framework agreement was established in January 2018. The contractual agreements that
cover this arrangement are such that contingent labour procured through this route are
not paid using a disguised remuneration scheme.
To have complete visibility of the payment arrangement across a number of years between
suppliers and interim workers (contingent labour) at the end of potentially multi-tiered
supply chains would require access to HM Revenue and Customs’ records, which is not
possible for the reason we have already stated.
On 9 June 2021, you requested an internal review as follows:
“I am writing to request an internal review of Her Majesty's Treasury's handling of my
FOI request 'Use of Contractors that have used Disguised Remuneration Schemes'.
I am confused and do not accept that HMT have responded correctly to this FOI
request.
In your response on the 21/12/2020 you stated that I can confirm that HM Treasury
holds some information within the scope of your request.
In your response on the 21/01/2021 you stated that We can confirm that HM
Treasury does not hold information within the scope of your request.
In this latest response dated 8/6/2021 you have stated We can confirm that HM
Treasury does not hold information within the scope of your request
So part way through this request HMT decided that it no longer had data in scope.
This is quite odd, is it possible to explain?
You stated the following
"HM Treasury uses the pan Government Public Sector Resourcing framework
agreement to source and procure contingent labour. This framework agreement was
established in January 2018. The contractual arrangements that cover this
agreement are such that no contingent labour procured through this route are paid
using a disguised remuneration scheme."
HMRC also use the Government Public Sector Resourcing framework and identified
as late as July 2020 that it was using contractors that were using tax avoidance
schemes.
The law makes it clear that the public body must ensure that its suppliers and
resources have not used avoidance schemes. It is not acceptable to hide behind the
argument that only HMRC could know this.
However, your department should be congratulated on one level of honesty that
exceeds that of HMRC in concluding that don't know means 'don't know', even if that
--- PDF page 3 ---
3
is breaking the law that HMT itself helped formulate. In comparison HMRC stated in
2018 that they did not know how many contractors had used tax avoidance schemes
and from not knowing the answer stated the number to be nil. Clearly illogical.
However, after several further FOI requests they finally told the truth and admitted
knowing of at least 13.
Is it a fact then that every other public body other than HMRC is exempt from the
law as formulated by HMT in 2012 on the grounds that they cannot know the
answer to the question of whether their suppliers or contingent labour has or is
using a tax avoidance scheme?
I think that HMT needs to consider sanctions on itself as it has not complied with the
law that the Chief Secretary to the Treasury announced on 31/1/2012. Please state
why HMT should not report itself.
There also remains a gap between 2016 and 2018 where HMT was engaging
contingent labour and suppliers that may have been using tax avoidance schemes. I
will ask one last time for HMT to confirm that it did not engage suppliers or
contingent labour using tax avoidance schemes post 2016. It is worth pointing out
that under section 77 of the FOIA it a criminal offence for a person to do anything
with the intention of preventing the disclosure of information pursuant to an FOI
request.”
The Review
I have considered the response we provided to you and whether our handling was
compliant with our obligations under the FOI Act. In considering our response, there has
been a thorough review of the issues you have raised and whether any information held
by HM Treasury falls within the scope of your request. After careful consideration, I have
concluded that our handling was compliant with our obligations under the FOI Act and as
such I am upholding the original response for the reasons set out below.
The use of contingent labour in HM Treasury is based on the operational needs of the
department. The responsibility for its procurement is devolved to the individual Business
Group experiencing the capacity and/or capability gap. The information relating to
individual placements such as, amongst other things, an approved business case,
statement of requirements, IR35 assessment, individual contract with the supplier of the
interim worker is retained by the individual Business Group for each assignment and not
held centrally.
Where there is an identified need that has received the necessary departmental approvals,
the procurement of contingent labour is required to be routed through the Department’s
call-off contract from the PSR framework, which is with Alexander Mann Solutions (AMS)
and was established in June 2018. The contractual arrangements covering this agreement
are such that interim workers procured via this route are not paid using a disguised
remuneration scheme, which AMS has confirmed to be the case. However, this would not
prevent individual workers engaged by HM Treasury via this route being employed
elsewhere or carrying out their own trade with payment arrangements in place, which PSR
would have no sight of. The same would apply to those interim workers procured through
HM Treasury’s call-off contract with CCS’s predecessor framework to PSR (Contingent
Labour One RM960) before June 2018.
--- PDF page 4 ---
4
HM Treasury did hold some information to enable a partial answer to your initial request
dated 23 November 2020 (Ref FOI2020/42887). We were able to identify through our
central contracts database that the only contingent labour working in the Treasury at that
time had been procured via its PSR contract. However, after further consideration was
made on receipt of your subsequent request/s we felt it appropriate to change our
language to reflect that PSR was not sighted on separate working and payment
arrangements that individual workers may have had in place elsewhere, as referenced
above.
HM Treasury takes its legal responsibility to prevent tax avoidance in its contingent labour
supply chains very seriously and remains committed to tackling those who promote and
operate schemes designed to do so. The use of Treasury’s Public Sector Resourcing
contract is mandated in the department to source requirements and we maintain close
working relations with the supplier to ensure compliance. Were we to become aware of a
contractor working in HM Treasury on a temporary basis who is using a disguised
remuneration scheme, we would take robust compliance action, including immediate
action to terminate the engagement.
Conclusion
While I am aware you may find these conclusions disappointing, I hope that by setting out
the basis of the review, its findings and conclusions above, you will be assured that the
Treasury has, on your behalf, carried out a thorough and considered review of the request
you made and the responses that the Treasury gave under the FOI Act.
If you are not content with the outcome of this internal review you have the right to apply
directly to the Information Commissioner for a decision. The Commissioner can be
contacted at: The Information Commissioner's Office, Wycliffe House, Water Lane,
Wilmslow SK9 5AF.
Yours sincerely
Head of Information Rights Unit