David Miliband could be saving thousands of pounds through tax avoidance
Labour MP David Miliband is channeling his income through a company in order to avoid tax, an investigation by the Mail on Sunday has revealed.
The MP pays his non-parliamentary earnings into The Office Of David Miliband Limited, a company with shares owned by both Mr Miliband and his wife.
By channeling income through company shares, and exploiting his and his wife’s tax-free allowance on company dividends, Miliband avoids paying income tax on some of his earnings.
A senior accountant has estimated that Mr Miliband’s annual tax saving could runs into six figures.
The tax avoidance method was criticised by HM Revenue & Customs during the last Labour Government when then-Chancellor Alistair Darling promised legislation to clamp down on similar tax avoidance schemes. No such law was ever introduced.
The Mail on Sunday also explored Mr Miliband’s lucrative non-parliamentary earnings, suggesting he recently earned more than £21,000 a day for work in the United Arab Emirates.
A previous MoS report had revealed the former Foreign Secretary also works for Pakistan-based City firm Indus Basin Holdings. It was reported that he will do just five days’ work a year for the firm in return for a £50,000-a-year salary.
Former prime minister Tony Blair’s tax affairs have also been criticised recently. Research by The Daily Telegraph showed that a show a company set up by Mr Blair to manage his business affairs appeared to be avoiding tax.
The company, Tony Blair Associates, paid just £315,000 in tax last year on an income of more than £12 million.
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