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    Hunt continues for the work of Finance johnnies.............

    Mandarins face sack after refusing to answer tax questions

    More than 100 senior civil servants employed 'off-payroll' are refusing to reveal how much tax

    they pay, in defiance of orders from the Treasury.

    Cabinet minister calls for major reform of the Civil Service

    Senior officials across Government who are paid through agencies or personal service companies

    have ignored instructions to prove they pay the appropriate level of income tax and National

    Insurance.

    They are flouting orders from Danny Alexander, the Chief Secretary to the Treasury, who said

    last year that any official earning more than £58,200 a year and employed for more than

    six months 'off the books' must demonstrate they are paying their full share of tax.

    The arrangements are only acceptable in "exceptional circumstances", he said.

    Being paid through a service company allows the employee to "streamline" their income and

    take advantage of corporation tax, at 20 per cent, rather than pay income tax at 40 per cent.

    It also means recipients can avoid paying National Insurance.

    The Treasury fears some service companies are used to disguise the true level of income from

    the taxman. They want those using them to prove they are paying as much tax as their colleagues

    on the payroll.

    But despite the crackdown, since August 2012 some 1,232 civil servants have been granted new

    off-payroll contracts.

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