Not entirely convinced by this reporting you know.
David Harding earned an income of £87m last year from Winton Capital Management, the investment firm he founded in 1997, and paid an annual tax bill of £34m – enough to fund the salaries of 1,500 newly-qualified teachers.
But the 51-year-old admitted that he was not \”whiter than white\” and had paid an overall rate of just 39pc in the last financial year, as he makes the majority of his money from dividends rather than salary, which are taxed at a lower rate. Mr Harding currently owns 56pc of Winton Capital Management.
Over the year he took a £16.1m salary, paying £8m in income tax, and made National Insurance contributions of £325,000. He also earned £71.3m in dividends and paid 40pc tax on that.
Last year the business enjoyed turnover of £350m and made operating profits of £233m, paying £62m in corporation tax.
I know certain readers have a better grasp of this than I do. But there\’s something hinky about that calculation. For some part of that corporation tax bill is imputed to be the tax on his dividends. Dividends are paid net of basic rate tax as corporation tax has already been paid upon them. What the individual then pays in tax is only enough to take them up to the higher rate.
Plus, look at that NI charge. Given that he owns 54% of the company the distinction between employees\’ and employers\’ contributions is particularly problematic for him. There\’s another £800k or so of employers\’ contributions to NI that could be partially or wholly ascribed to him based upon that salary.
If anyone would like to work out his true tax rate?