Welsh Government pays tax man £19m
Emily Price
The Welsh Government has paid a £19m tax bill which was racked up by its environment agency, Natural Resources Wales (NRW).
The latest accounts shows the bill was calculated following an investigation by HMRC into the way the agency hired contractors.
The Welsh Government sponsored body ensures that the natural resources of Wales – such as forestry and lakes – are maintained.
Deputy First Minister with responsibility for climate change, Huw Irranca-Davies says NRW and HMRC are “continuing to discuss this matter in order to bring about a resolution.”
He said: “Since becoming aware of the matter, the Welsh Government has increased its engagement with NRW to track and monitor its progress in resolving the issue and to learn lessons from how the position came about.”
NRW’s accounts show the agency made a £19m “without prejudice payment” after a “potential liability” was uncovered by a tax probe.
The agency says it’s still in discussions with HMRC about the final bill.
Payout
Chair of the Senedd’s Public Accounts and Public Administration Committee, Mark Isherwood, says the payout “couldn’t have happened at a worse time” for public finances.
He said: “It is shocking to hear about the scale of Natural Resource Wales’ potential tax bill and the payment of £19m it has made to HMRC with Welsh Government money.
“Given Natural Resources Wales’ track record in relation to its decision making and contracting processes – which were found by the previous Public Accounts Committee to be wholly unsatisfactory – this is extremely worrying.
“Clearly an issue of this magnitude demands answers and the Committee will be bringing both Natural Resources Wales and Welsh Government in for scrutiny at the earliest opportunity.”
‘Serious’
Chair of the Climate Change, Environment and Infrastructure Committee, Llyr Gruffydd says the tax bill is a “serious situation”.
He said: “We are extremely concerned by the Welsh Government statement indicating that NRW may owe HMRC £19million.
“This is a very serious situation; I urge all parties to resolve this dispute and ensure that the Welsh taxpayer is not short changed.
“Staff at NRW provide an important service for the people of Wales, and it is vital that they are able to continue to deliver this work at this challenging time.
“Our role as a Committee is to scrutinise the Welsh Government and arms-length bodies such as NRW to make sure that they are working effectively and delivering for the Welsh public.
“We will be keeping this worrying matter under review, and we urge the parties to inform us of developments in due course.”
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In England the Environment Agency pay HMRC nothing other than deductions on staff pay because they are a crown body. Why does its equivalent in Wales, NRW, get a £19million bill? A minister in the Welsh Government has scewed up.
HMRC investigates numerous other goverment and devolved nations departments and devolved bodies. From what we are told it maybe that the contractors should have been classed as employees but were being treated as either self employed or had there own companies (IR35) or where using some sort of umbrella company. Such screw ups happen all over the place and are not unusual as this area of employment law/taxation is just a mess.
I’m just gobsmacked. The English Treasury taking money that could have been used to clean up the rivers, including the one that is polluted by chicken farms feeding English mouths.