Six Lewisham Council employees paid via "tax avoidance" scheme [UPDATED]

Tonight's File on 4 programme on Radio 4 focuses on Council employees being paid through limited companies, which allows high earners to "make their own tax arrangements rather than be paid through the PAYE system."

In the programme, the Chairman of the Public Accounts Committee, Margaret Hodge MP describes such arrangements as a tax avoidance scheme and says no government employee should be paid on this basis.

The programme has revealed that Lewisham has six employees paid on this basis. Hackney Council was the local council with the highest number of people paid through external companies, with 39.

Update: Cllr Mike Harris, who chairs the Council's Audit Panel, says this issue will be discussed at the next panel meeting on March 22nd.