Report: Public funds used for top civil servants' tax bills

Sir Jeremy Heywood's use of a chauffeur-driven Toyota Prius reportedly cost taxpayers £172,100 over the past two years. Credit: John Stillwell/PA Wire

Some of Britain's top civil servants are enjoying an effective pay boost of up to £30,000 a year by having part of their tax bills paid out of public funds, The Daily Telegraph has reported.

The newspaper said Government departments were paying the taxes on perks such as official cars, first class rail travel and rent-free accommodation.

HM Revenue and Customs (HMRC) said the rules have been in place since the 1970s and insisted taxpayers do not lose out.

The report said those benefiting from the system included the Cabinet Secretary, Sir Jeremy Heywood, the head of NHS England, Sir David Nicholson, and the former head of the Serious Fraud Office, Phillippa Williamson.

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'Tax bill perk for civil servants'

Some of Britain's top civil servants are enjoying an effective pay boost of up to £30,000 a year by having part of their tax bills paid out of public funds, The Daily Telegraph has reported.