Mr Vine appears to have been using his ten-year-old daughter Martha to avoid tax payments.
The presenter of the Jeremy Vine Show and the TV quiz Eggheads, has been funnelling cash through a limited company, Jelly Vine Productions, of which she is a shareholder.
Richard Murphy, an accountant at Tax Research, said: ‘He is obviously using the company to reduce his tax bill. It is perfectly legal, and perfectly allowed.
‘What is a little unusual is his daughter. Let’s be honest, she is unlikely to have said, “Daddy, I want to spend my pocket money on shares in the company”.’
Jelly Vine Productions’ accounts do not disclose how much it has paid out or whether it has paid dividends to all three family members, or just Mr Vine himself.
Mr Murphy said Mr Vine could have named his daughter as a shareholder for ‘long-term tax-planning’ purposes, reducing the tax she would pay if she inherits part of the business.
Actually, it’s not just legal and allowed, it’s actively promoted by Richard Murphy:
Self-employed workers and those in partnerships could benefit from considerable tax advantages by switching their business to a limited company, following tax changes in the Budget last year.
The change will enable anyone earning profits of about £30,000 a year to save up to £3,500 of tax. Even after the extra costs of running a company, savings could be almost £3,000. There are very few other ways available to save 10 per cent of your income and suffer almost no disadvantage as a result.
Glad we’ve got that settled then, this practice is wholly tax compliant.
After all, it must be, sa this is how the LHTD ran his own business and tax affairs for some time.