Bang goes Ritchie’s K then

The latest Ecotricity accounts, posted on Friday at Companies House, show Mr Vince has been loaned £3.2 million by his own company. The loan is interest free and there is no time limit stipulating when it must be repaid.

The loan allows Mr Vince – who made his fortune building wind farms and solar parks and selling green electricity to 150,000 customers – to use the income without paying personal tax on it, other than a much reduced sum as a benefit in kind.

Richard Murphy, a chartered accountant and tax expert, said: “What the loan does is potentially advance money at a lower rate of tax than would be the case if he was paid a dividend or a salary now.

“Deferring when the tax is paid is one of the major methods of tax avoidance. This therefore looks to be a tax avoidance arrangement.”

10 thoughts on “Bang goes Ritchie’s K then”

  1. So Much for Subtlety

    I am not surprised that Ritchie has noticed that a budding Del Boy in an industry dominated by caring, sharing Del Boys is playing fast and loose with his share holders’ money as well as his tax obligations. I am surprised Ritchie hasn’t done his usual schtick and said that this is a special case, and we shouldn’t judge and that this particular Del Boy isn’t one of the bad guys etc etc

  2. *sigh*. Loans to participators. S455. When a company lends money to a shareholder, the company has to pay 25% of the amount to HMRC within 9 months of the company’s year end. The company gets that back when the loan is repaid (or written off). If the borrower is an employee or director then they will be charged tax unless they are paying interest on the loan. If the loan is written off then it’s taxed as employment income.

    All very routine and covered by legislation.

    Now of course people will be squawking that the guy has got £3.2m tax free and isn’t it all unfair.

  3. Ah but Ritchie has been making hay about personal service companies and ‘umbrella’ companies. 25% is not 45% and includes no NIC.
    At least the guy isn’t the Unite trade union; tax avoiding fuckers.
    P.S If I get 35k every year from, shall we say an ’employer’, that would be called income from employment; Ritchie gets to call it a grant.

  4. “Bang goes Ritchie’s K then”

    Well, one of them. He still has two more.

    “Deferring when the tax is paid is one of the major methods of tax avoidance”

    And finally the cunt comes right out and admits it: every single person in the country is a ‘tax avoider’ by his standards, and therefore whether you get persecuted for it or not in the Courageous Reich will be down to Ritchie and his views on your religion or skin colour.

  5. I think Ritchie has thrown in his lot with the Green Party.

    Then again, this might just be part of his peerage negotiations with labour, i.e. which direction do you want me passing in relation to the tent

  6. I forget, but is he still in a partnership with his wife?

    Y’know, the sort of partnership where you can minimise the higher rate tax incidence?

    If he is, that fact and the Friendly Society used as a vehicle for the FTM should be surely enough ammunition to embarrass him.

    Oh, silly me.

  7. @JohnMiller

    Yes, the fat twat is in an LLP just him and his wife but he does take 99% of profits. But he has used companies in the past as his trading vehicle and paid himself dividends so saving himself NI. He once on his blog defended this by saying that he was already paying the maximum NI on a job he also had. Of course this ignores employer’s NI so his defence was disingenuous to say the least. Nowadays he just says “so what, everyone was doing it at the time”

    Of course, LLPs aren’t employers so he doesn’t pay employer’s NI on his income which he would do if he incorporated and paid himself a salary, so he clearly isn’t a big fan of paying employer’s NI himself.

    His defence of using an LLP was something about his publisher insisting on it for liability purposes which sounds bollocks as the same would have been achieved through a Limited Liability Company.

    Also, of course, an LLP pays no tax, it’s the partners that do and strangely while Murphy thinks companies should be forced to disclose even more, he’s not in favour of disclosing personal tax returns as that would mean publishing his own.

    Only a cynic would say that the fat twat was being hypocritical or had something to hide.

  8. Of course this is totally different from Murphy borrowing money from his Limited Liability Partnership (as revealed in the 2011 accounts for same). Totally, utterly different.

  9. I wouldn’t be surprised if his virulent anti-avoidance rhetoric isn’t cos he’s a serial avoider himself and is utterly conflicted about it. But just can’t help himself from doing it.

    The alledged tax-free 35k “research grant” is just, well, c’mon, really? How is that not either income or a fee to his LLP (hence attracting various taxes depending on how it is dealth with)?

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