Following the exposure by the joint Exaro News and BBC Newsnight investigation Ed Lester, head of the Student Loans Company, is now having his tax and national insurance deducted at source.
The deal backdated to February 1 will mean he will be on the pay roll until his contract ends in February 2013. The change will mean that he will have to pay full National Insurance contributions. The SLC – which has avoided paying NI will have to pay £17,000 to the tax authorities this coming year. Calculations by accountancy specialists means that on his £182,00o salary (including £14,000 bonus and £28,000 pension ) he will be possibly have to pay £26,000 in tax which he could have avoided by placing the contract through his personal service company, Placepass, based at his home on an island in River Thames at Marlow, Buckinghamshire.
He could also be charged benefits in kind on his Glasgow flat which the government is funding as part of a £550 a week expenses package.
This is the statement from the Student Loans Company:
“We are taking forward the changes to Ed Lester’s contract, following the announcement by Universities Minister, David Willetts on 2 February 2012.
“Ed Lester will be a Student Loans Company employee with effect from 1 February 2012 and tax and NI will be deducted at source. His salary and bonus arrangements will be consistent with his previous contract.”
One down, how many more to go, when the investigation by Danny Alexander, chief secretary to the Treasury, starts to bite.