A flagship Tory council faces fines and back taxes of almost £1 million after failing to pay its correct tax bill.
Hammersmith and Fulham admitted a “careless” approach to its finances after telling HM Revenue and Customs 59 cases where it had not taken tax off employees at source, out of a total workforce of 4,800.
The council said it had failed to carry out proper checks on whether people were consultants, who are responsible for their own tax, or staff.
The ruling Tory group is now coming under pressure to apologise after £1 million was set aside to cover the cost.
The mistakes occurred on the watch of former council leader Stephen Greenhalgh, who quit this summer to become Boris Johnson’s deputy mayor for policing.
Labour councillors said the council had ignored warnings about its tax payments since December 2010.
Steve Cowan, the Labour group leader, said the mistakes represented “an unforgivable level of financial incompetence” and the money set aside to pay the fines and back taxes was equivalent to almost a two per cent council tax cut. He added: “At the very least, they need to issue a public apology.”
Council insiders said it expected to owe HMRC between £300,000 and £750,000 in unpaid taxes and fines.
A spokesman for the council said: “HMRC has complimented the council on the effectiveness and efficiency of its approach to its voluntary disclosure.
"There is absolutely nothing to suggest the council did not act in good faith.”
