Welsh Government Pays £19M Tax Bill to NRW

The Welsh Government has paid £19 million to HM Revenue and Customs (HMRC) on behalf of Natural Resources Wales (NRW) following an investigation into the agency's hiring practices concerning contractors. This payment, made without admission of liability, stems from a probe into NRW's compliance with off-payroll working rules, known as IR35, which ensure that contractors pay similar taxes as employees. NRW's financial accounts indicate that discussions with HMRC are ongoing, and the final tax liability could potentially be higher. Deputy First Minister Huw Irranca-Davies emphasized the government's increased engagement with NRW to resolve the issue and improve oversight. The situation has raised concerns among politicians about NRW's financial management and the implications for public finances, especially as NRW faces budget cuts and job losses in the future. Overall, the incident highlights significant fiscal challenges and governance issues within NRW at a critical time.