Typical Wealthy Capitalist

[joggerjayne]

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"

[Quizmonster]

It's only a few weeks ago that it was revealed thet the guy who runs the Student Loan Company...a civil servant and consequently a Government employee!...was having his salary paid into a company and avoiding lots of tax thereby! Big hoo-ha. Then it was discovered that he was far from alone and that quite a few of his ilk were in the same position. You'd have thought the Chancellor might have known, eh?
Clearly HE should not have been allowed to do that, but there is no reason at all why Ken Livingstone - or any other private individual - should be prevented from doing so.

[jno]

yes, why not set up as a limited company?

You could be like News International, pay 6% tax, run the government, buy the police and invite Cameron around for some hacking.

[rojash]

This is pure hysteria.
When you have multiple sources of income and multiple sources of expenses, it's perfectly normal too manage them through a limited company. It's not a tax loophole.

It only becomes a tax loophole when (as in other recent examples) you have a single employer (such as a government department), ans set up the company solely as a means of avoiding normal PAYE.

[ummmm]

I presume he's being advised by an accountant.