Author Topic: Senior civil servant has special tax deal  (Read 950 times)

DarthVector

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Senior civil servant has special tax deal
« on: 02 Feb 2012 09:12AM »
Apparently, the head of the Student Loan Company gets them to pay him through his own private company without first deducting income tax or National Insurance.

Quoting from the BBC:

The arrangement was agreed by the tax authorities and potentially saved Ed Lester tens of thousands of pounds.

http://www.bbc.co.uk/news/uk-politics-16709780

So much for us all being in it together.

hossylass

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Re: Senior civil servant has special tax deal
« Reply #1 on: 02 Feb 2012 09:31AM »
In case anyone is interested how this works...

My ex-husband used the same method, it cost him 12 a month to have a management company handle it all, but he had an odd job that meant he was on-call all the time, and most of the work was abroad.
It saves you a massive amount of money.
Basically you pay yourself minimum wage, and then the remainder is paid in dividends, to yourself, as a shareholder. So as the rate of pay was high per hour, often he only actually "hands on worked" for about 20 hours a week, and paid pennies in income tax and NI.

If I'd stayed with the irritating git I think I wouldn't be too worried about my income...