Tax avoidance

Nearly 100 top local authority employees are being paid through limited companies - allowing them to secure lower tax bills.

A BBC investigation discovered that scores of council big earners are allowed to make their own tax arrangements instead of being through the PAYE system.

The situation was dubbed a "tax avoidance scheme, which is totally wrong" by public accounts committee chair and MP, Margaret Hodge.

It emerged after BBC Radio 4's File on 4 programme submitted a Freedom of Information request to more than 400 local authorities throughout the UK.

East London’s Hackney Council had the highest number, with 39 of its permanent staff paid through external companies.

In one case investigated by File on 4, the chief executive of Hammersmith and Fulham Homes Ltd – the council’s housing arm - was paid more than £900,000 through his company over a four year period.

The full article is available on the BBC website