Taxation of controlling persons

On the back of the review of the tax arrangements of public sector appointees, the Government has launched a consultation into the engagement practices of controlling persons. It proposes that a provision is introduced to ensure that controlling persons have income tax (PAYE) and National Insurance deducted at source by the engaging organisation. The closing date for comments is 16 August 2012.

The purpose of this consultation is to explore whether this is a necessary and appropriate way of achieving this aim and to test whether the provision is sufficiently targeted and without unexpected detrimental effects.

Further details are available from HMRC.