LONDON MAYORAL CANDIDATE Ken Livingstone, who has criticised personal tax avoidance through company structures, has paid himself through a personal company.
Livingstone (pictured) set up as personal company with himself and his wife as shareholders, earning hundreds and thousands of pounds in 2009 and 2010.
The report, from the Daily Telegraph, said Livingstone avoided some £50,000 as a difference between paying corporation tax at a lower rate than under income tax and through dividend payments.
Livingstone has previously said tax avoiders should not be allowed to vote.
Smith & Williamson national tax director Richard Mannion said Livingstone’s actions were not illegal however, “given what Mr Livingstone has said about tax avoidance, that takes you into a whole different area of what is legally correct and what is morally correct”.
Livingstone said the combination of corporation tax plus the tax on his payout from the business would effectively work out to the same amount as under income tax.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states