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  • After knowing that the head of the Student Funding Company avoided paying thousands of pounds in income tax, now Mr

After knowing that the head of the Student Funding Company avoided paying thousands of pounds in income tax, now Mr

After knowing that the head of the Student Funding Company avoided paying thousands of pounds in income tax, now Mr. Lester will be forced to pay tax and National Insurance contributions from his pay packet in future. He earns 140,000 a year, has been paid through a private firm under a two year contract signed in January 2011.

In May 2010, Mr. Lester was appointed interim chief executive. He was then paid through the recruitment firm Penna plc which placed him with the Student lending Company. He was appointed on a two-year contract in January 2011, but retained the terms of his temporary employment, instead of being added to the payroll. The revelation is a big embarrassment for the coalition after it came into light that ministers approved the deal. Ministers announced that Mr. Lester has now been added to the payroll after taking advantage of a tax loophole which has saved him an estimated 40,000 a year from his tax bill.

Danny Alexander, Chief Secretary to the Treasury admitted that the arrangement set a bad example and announced that the Government was now reviewing all previous contracts to ensure other public servants were not taking advantage of similar tax dodges. The revelation has shaken students and their families who were forced to give thousands of pounds in finance to cover tuition fees and living costs at the university. For three-year courses starting this autumn, they face the prospect of taking out finance up to a maximum of 50,000, with interest charges on repayments of 3 per cent above the inflation. He also said that the Student Loans Company will change the arrangements and deduct tax and National Insurance at source for the remainder of the contract. Get finance at your footsteps: Apply online payday loans no credit check with quick payday loans and easy cash without any hassles, students and unemployed can also apply with ease and meet their entire financial requirement in simple way.

Across Government, if any such appointments are found, whether agreed by this or the previous government, which do not provide value for money, he would urge departments to seek to unwind them as fast as possible and as quickly as it is compatible with securing good value for public money. This is a time when we all have to move in the same direction to tackle the country’s financial problems, it is very important that we all must contribute our full and fair share.

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