Mystery over HBOS chief’s diverted pay through OWN family's company

Shamed former HBOS chairman Lord Stevenson had part of his pay channelled through a secretive consultancy firm owned by him and his four sons. The stricken lender’s annual report reveals that part of Stevenson’s £472,500 fee for 2002 was paid to the company, Cloaca Maxima, named after a large Roman sewer. It is unclear whether payments were diverted through Cloaca Maxima in other years. Tax experts last night said such arrangements are widely used to cut tax bills, particularly to avoid paying national insurance. When individuals divert their salaries to companies, tax is not automatically deducted by HM Revenue & Customs at source. The main benefit is neither the employer nor the employee has to pay national insurance....Read more here