The Mail on Sunday has claimed that Kids Company gave more than £700,000 tax-free to 25 employees in 2014.

According to an article in yesterday’s paper by Miles Goslett, whose initial article in The Spectator sparked the intense scrutiny of Kids Company's activities, the charity, which has since shut down and is facing multiple inquiries into how it was run, awarded grants to clients who also claimed to be employed at Kids Company.

The newspaper suggests that these people were being given grants as a way of the charity avoiding paying tax and National Insurance.

A document that the Mail said it had seen lists 25 clients who between them received £769,150.

Camila Batmanghelidjh, former chief executive and founder of Kids Company, and Alan Yentob, chair, will appear before the Public Administration and Constitutional Affairs Committee to give evidence for its inquiry into the collapse of the charity.

Kids Company collapsed this summer following a string of allegations of mismanagement, after it emerged that the Cabinet Office had withheld an emergency grant until there was a change of leadership at the charity.

The Charity Commission, PACAC, and the National Audit Office have all launched investigations.

A Charity Finance magazine analysis of the accounts shows that while the charity’s income grew astronomically the charity failed to build up adequate reserves.