By Marino Donati | 20 October 2014
Government efforts to curb tax avoidance will be undermined by low pay in civil service tax jobs, according to The Association of Revenue and Customs.
ARC, which represents senior staff working in Revenue & Customs, says the significantly higher pay in the private sector means many members would consider leaving the civil service.
In its proposal, issued ahead of the Autumn Statement in December, ARC called on the chancellor to address the significant pay disparity.
It said government figures showed that on average private sector tax experts earn up to 65% more than their HMRC counterparts, and the gap continues to widen.
A survey of ARC members from earlier this year found that almost two thirds (65%) were inclined to look outside of the civil service for a new role. And 88% said that pay was the major issue affecting their morale and motivation.
ARC President Tony Wallace said that the issue was likely to intensify as the private sector sought experienced tax staff to help adapt to new requirements aimed at securing the UK’s Corporation Tax base.
‘The country simply cannot afford to see such experts leave and transfer their skills to the private sector,’ said Wallace.
‘The gap in salary levels now presents a real and growing risk and if the chancellor is serious in his efforts to tackle avoidance then he has to address that risk as a matter of real urgency.’
ARC forms a section of the FDA, which is the trade union and professional body representing 18,000 of the UK's senior civil and public servants.
