Tax dodging concerns over small firms used to pay NHS test-and-trace workers

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Tax dodging concerns over small firms used to pay NHS test-and-trace workers

Many workers employed across the £37bn NHS test-and-trace service are being paid through networks of opaque small companies that experts fear could be defrauding the Treasury via a notorious tax scheme.

Investigation was carried out after sources working at Covid-19 call centres, testing sites, mobile testing units and laboratories raised concerns about their payslips and employment terms.

Headed by the Conservative peer Dido Harding, NHS test and trace has become one of the biggest sources of new jobs during the pandemic, with a workforce of 50,000.

Most of its staff are supplied not by the National Health Service, but by outsourcing giants including Serco and G4S, and dozens of recruitment agencies in a broad contracting network. 

Tax experts and unions fear weak controls by outsourcers and government agencies, and a complex chain of companies supplying labour for the service, which was created from scratch a year ago, have raised questions over the transparency of the system and left it wide open to abuse.

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