Richard Murphy, pots and kettles

So, I understand that the Dispatches programme, featuring our favourite retired accountant, Richard Murphy, made some allegations about tax avoiding behaviour by some Tory politico types.

The programme also focuses on Mr Hammond, whose £7.5million fortune makes him one of the wealthiest of the Cabinet’s 18 millionaires.

It suggests that his practice of paying himself share dividends instead of a salary from his property firm Castlemead is a tax-efficient device used by the wealthy.

And it claims that he moved to limit his exposure to the new 50p top rate of tax last year by moving shares in the firm into the name of his wife who pays tax at a lower rate. It is suggested the move could save him more than £25,000 a year.

Hmm. I mean, gosh.

Dividends instead of pay, so dodging NI, and income switching, so dodging some income tax.

I wonder how Ritchie new about all of this?

Oh yes, that\’s right.

Richard is the person who wrote the article showing us how to do this.

And Richard is the person who seems to have run his own tax affairs in exactly this manner.

Now I didn\’t see the programme: but Richard did of course tell everyone that this was what he did so that\’s how he knows it works, didn\’t he?

12 thoughts on “Richard Murphy, pots and kettles”

  1. Dividends instead of pay, so dodging NI, and income switching, so dodging some income tax.

    Eliminate NI (which is just a second income tax) and have a completely flat rate income tax, and we won’t have to worry about these tax avoidance measures. Problem solved.

  2. I saw the whole thing: on being questioned why a person would engage in the practice of taking dividends rather than a salary Richard (who popped up several times), in front of the whole nation and in the context of a programme about dreadful hypocritical people avoiding tax, stated that this was to avoid the NI cost on salaries.

  3. Kay Tie,

    Why is Ritchie getting on to TV? He’s got zero credibility.

    If you ran a state-owned TV station, made £200,000 + nice pension + perks, but weren’t very good at getting an audience and could feel the ill breeze of the free market approaching, would you hire the likes of Timmy who would set the general tone of “the State is Bad” or Richie?

  4. hehehe…I would love it more if his clients (probably former clients) all decided to sue him for giving them bad advice on tax mitigation

  5. Saw the opening sequence and thought “this is likely t0 be boiler-plate aren’t-bankers-nasty stuff”.

    10 secs later up pops Murphy, off goes the switch.

  6. isn’t it strange that no one ever makes a fuss about activities that might have involved tax-dodging by the Blairs and Balls who keep arbitrarily changing the definition of their main residences…

  7. Hang on Tim, that was years ago, Ritchie has seen the light since then. He must be paying the maximum tax he can, anything else would be immoral and hypocritical.

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