Moira Stuart\’s taxes

This is amusing:

As the public face of HM Revenue & Customs, she tells people that \”tax doesn\’t have to be taxing\”. Now Moira Stuart appears to have found a way to apply this slogan to her own financial affairs.

The BBC newsreader, who appears on the Revenue\’s television and radio adverts, has set up a company that allows her to avoid the full impact of the 50p top tax rate. The firm legally entitles her to pay corporation tax at 21 per cent on some of her earnings, rather than income tax at up to 50 per cent.

It\’s also entirely and absolutely legit: this is tax complainace, not tax dodging of any sort.

A spokesman for HMRC said: \”Moira Stewart works on specific advertising campaigns for HMRC. She is not employed directly by us so there is no question of disguised employment.\” He would not comment on tax rate paid by Miss Stuart for her HMRC work.

If you\’re freelancing around, if you\’ve got several diferent peoplewho you freelance or, sure, a services company is, even under the strictest reading of IR35, an entirely legit structure.

You are running a business, the input being your human capital (no, she\’s not doing the ads because she\’s a 62 year old Afro-Carribean, she\’s doing them be cause she is Moira Stuart, a \”name\” and brand) and yes, it\’s right and just that you are taxed as a business when doing so.

Same with giving talks at the WI, and quite possibly writing pieces for the papers.

It\’s only Ritchie who objects to all of this: and Ritchie, as we know, who was using this structure up to at least 2007.

5 comments on “Moira Stuart\’s taxes

  1. Except that the amounts they give are wrong.

    She may well have to pay corporation tax at 21% but she will also have to pay income tax and possibly NICs on money she takes out of the limited company as income.

  2. Yes, exactly. You only pay 21% if your entire personal income falls below the 40% threshold. If you draw it as dividends above this you’ll pay it as income tax at about 30%.

    The advantage is that she could draw it as her sole income in future years and pay no tax, or she could shut the company down and pay the 10% rate which is called “entrepreneur’s something-or-other”, not sure if that is still going.

  3. She also avoids NI of course, but only at 2%.

    Still, the implication should be obvious even to socialists: employment taxes are so high even the State is evading them.

  4. “(no, she’s not doing the ads because she’s a 62 year old Afro-Carribean, she’s doing them be cause she is Moira Stuart, a “name” and brand) “: plus she has a lovely voice.

  5. would be an interesting study to find average tax rate paid by all those publicly advocating higher taxes….Naughtie, Paxman, Marr etc

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