Council: We’ll scrap deals with tax-dodge contractors
New Town Hall contract means agreements worth more than £5m could be severed if companies fail to comply with tax obligations
05 May, 2017 — By Koos Couvée
Islington Town Hall
MAJOR council contractors that dodge tax could see their deals with Islington Council terminated under new rules adopted by the Town Hall.
The council’s new standard contract conditions include specific rights to allow contracts over the value of £5million to be severed in instances where contractors have not complied with their obligations to pay tax.
The conditions oblige firms to inform the authority at the point of signing the contract of any instances in which it has not fully complied with its tax obligations.
Contractors will also be required to keep the council informed of their compliance with tax obligations during the length of the contract.
The Town Hall has agreed to annually review HMRC’s published list of tax defaulters, so as to identify any council contractors on this list and, if necessary, terminate contracts held with these companies. It has written to its contracted organisations, reminding them of their tax responsibilities, including management and payment of taxes.
The council’s director of resources, Mike Curtis, said: “The council is committed to making Islington a fairer place. At a time when reduced funding for public services and rising living costs are making life harder for residents, it is right that we expect our contractors to pay their due share of taxation.”