Top council earner avoids income tax

[retrodeath]

Times pg 14.

"Channels his income through his company in a scheme that reduces tax bills"

"His earnings go to company owned by him & wife. As result he avoids income tax at 45%, paying as little as 21% in dividends."

Government wants to clamp down...

Sounds pretty much what a vanilla contractor does.

Article has government worker slant but can only be a matter of time before service companies targeted.

And if it is decided that you've been running a company as a tax vehicle then don't be surprised if you find you are in dispute for a fat wad of pseudo tax.

Hector is coming.

[SteelyDan]

http://forums.contractoruk.com/busin...ntracting.html

KUATB

[Kess]

When I see lurid media stories like that I have to wonder how many of the newspaper's reporters and columnists have similar arrangements...

[pacontracting]

When I see lurid media stories like that I have to wonder how many of the newspaper's reporters and columnists have similar arrangements...

What the article failed to mention when it stated that he 'only' paid 21% corporation tax was that he would also pay 25% income tax on any higher rate income he drew as a dividend.

[Zero Liability]

Individuals utilising PSCs in the public sector have been and are being scrutinised by Hector constantly. So the clamping down is already on-going.

[Kess]

What the article failed to mention when it stated that he 'only' paid 21% corporation tax was that he would also pay 25% income tax on any higher rate income he drew as a dividend.

True, but the media seldom allows facts to get in the way of a juicy story.

[Boo]

When I see lurid media stories like that I have to wonder how many of the newspaper's reporters and columnists have similar arrangements...

In fairness it is far easier for reporters to have genuine contracts of self-employment / consultancy than it is for the average BOS IT bloke/ess.

Boo