Quizzes & Puzzles30 mins ago
Typical Wealthy Capitalist
24 Answers
LOL about Ken Livingstone.
"No one should be allowed to vote in a British election unless they are paying their full share of tax" he said.
So he and Mrs Livingstone set themselves up as a company called Silveta Ltd.
In the year ending 2010, the accounts show that Ken earned £284,000 from media appearances, and has a bank balance of £320,000.
So Ken's "full share" of income tax is charged at the higher rate of 50%, yes?
Err ... no.
Since Ken is a limited company, he only pays corporation tax ... at 21%.
Maybe we should all set ourselves up as limited companies!
From now on, I am JoggerJayne Ltd. Registered Office, The Princess Victoria, Brighton. My weekly cheque for reporting the netball results should be made payable to "JJ Ltd"
"No one should be allowed to vote in a British election unless they are paying their full share of tax" he said.
So he and Mrs Livingstone set themselves up as a company called Silveta Ltd.
In the year ending 2010, the accounts show that Ken earned £284,000 from media appearances, and has a bank balance of £320,000.
So Ken's "full share" of income tax is charged at the higher rate of 50%, yes?
Err ... no.
Since Ken is a limited company, he only pays corporation tax ... at 21%.
Maybe we should all set ourselves up as limited companies!
From now on, I am JoggerJayne Ltd. Registered Office, The Princess Victoria, Brighton. My weekly cheque for reporting the netball results should be made payable to "JJ Ltd"
Answers
Best Answer
No best answer has yet been selected by joggerjayne. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.That doesn't sound right JJ. If he takes a salary from the company, he still has to pay income tax on it like everybody else.
The reason for being a Ltd company is that you can pay yourselve(s) a relatively low salary - below the 50% band - and take a bigger chunk as a dividend, which is taxable at a lower rate. He and the missus will be the only two shareholders.
It's still a tax dodge, but it isn't quite as bad as you say.
The reason for being a Ltd company is that you can pay yourselve(s) a relatively low salary - below the 50% band - and take a bigger chunk as a dividend, which is taxable at a lower rate. He and the missus will be the only two shareholders.
It's still a tax dodge, but it isn't quite as bad as you say.
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