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Catherine McKinnell MP, Labour’s Shadow Exchequer Secretary to the Treasury, responded to claims that some NHS Trusts have been using tax avoidance schemes.
Financial services firms PricewaterhouseCoopers (PwC) and Liason released a statement in response to a report on ITV News regarding alleged tax avoidance among NHS Trusts:
Internal documents show Sherwood Trust boasting about savings they have made, saying by ‘implementing the PwC VAT Liaison Model, commonly referred to as a VAT avoidance scheme….because the shift was covered by an employee or by a limited company the trust is not liable for VAT'.
Kevin Green, Chief Executive of the Recruitment and Employment Confederation, told ITV News: "In reality we can't see any other benefits to the NHS other than avoiding tax."
Margaret Hodge, the chair of the Public Accounts Committee, told ITV News: "I understand why they are tempted to go down this route but they are wrong. They should not be engaging in aggressive tax avoidance.
"I have to say the people who benefit from this are the accountants who have set up this system and they are taking money out of the NHS, out of direct services...and pocketing it and that is tax payers' money."
Laura Kuenssberg: NHS Trusts in England accused of avoiding tax
Latest ITV News reports
ITV News reveals major accountancy firms stand accused of helping NHS Trusts in England avoid paying tax, using legal avoidance schemes.