Boris Johnson urged to stop MPs avoiding tax on second jobs

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Boris Johnson has been urged to prevent lawmakers from evading taxes on their other jobs by diverting income through low-tax private companies.

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A total of £1 million is being paid to at least 10 MPs through such an arrangement. many times Newspaper met,

The approach could reduce the tax bill for higher earners by potentially avoiding the top 45 percent tax rate on personal income.

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Corporation tax has been cut in recent decades and companies now pay 19 percent on their profits – a fact that can be used to the advantage of those paying less.

The approach is perfectly legal, but it has raised eyebrows since lawmakers set tax rates in the first place.

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Margaret Hodge, a Labor MP who led the investigation into tax evasion while chair of the Public Accounts Committee, called the arrangements “totally disgraceful”.

She told the newspaper: “We, as MPs, determine the tax everyone pays and it is particularly reprehensible for some among us to use personal service companies in this way.”

Alastair Graham, formerly the chairman of the Committee on Standards in Public Life, also said that the arrangements “should be stopped as soon as possible”.

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Credit: www.independent.co.uk /

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