Livingstone Tax and Hypocrisy = Less NHS

Based on the figures produced by the Ken Livingstone campaign, I believe that the biggest saving he has made is actually in National Insurance Contributions both for himself and his company.

Add to that the shielding of income by then paying the other company shareholder (his wife) through a dividend rather than income and the savings just add-up.

Here is the data from the Ken Livingstone Campaign

2007/08 2008/09 2009/10 2010/11 Income from Employment £131,000 £21,645 £5,710 £5,700 Interest Income £16 £137 £18 £33 Dividend Income £6,667 £55,556 £63,333 Pension Income £5,242 £21,483 £25,502 Sub Total Income £131,016 £33,691 £82,767 £94,568 Tax on Earned Income £44,122 £4,864 £18,453 £22,691 Tax on Dividends  £1,260 £10,500 £11,970 Total "Tax"  £44,122 £6,124 £28,953 £34,661 The Tax on Dividends figures are 'odd'.  It is not clear what they represent - Income Tax paid on dividends received, in which case they seem very low - or maybe Corporation Tax paid by Silvetta Ltd. Anyway, let's have a look at these numbers as HMRC would have looked at them and, based on the incomplete data provided, would have presented as a Tax Return calculation. 2007/08 2008/09 2009/10 2010/11 Total 2008 to 2011 Income from Employment £131,000 £21,645 £5,710 £5,700 £33,055 Interest Income £16 £137 £18 £33 £188 Dividend Income £0 £6,667 £55,556 £63,333 £125,556 Dividend Tax Credit @ 10% £667 £5,556 £6,333 £12,556 Pension Income £5,242 £21,483 £25,502 £52,227 Sub Total Income £131,016 £34,358 £88,323 £100,901 £223,582 Less Personal Allowance £5,225 £6,035 £6,475 £6,475 £18,985 Net Taxable Income £125,791 £28,323 £81,848 £94,426 £204,597 Tax at Basic Rate 10% £223 £0 £0 £0 £0 Tax at next rate 22% or 20% £7,121 £5,405 £5,442 £6,247 £17,094 Tax at Higher Rate £36,476 £0 £0 £0 £0 Tax on Dividends at 32.5% £2,383 £19,861 £22,642 £44,886 Tax Charged £43,820 £7,788 £25,303 £28,889 £61,980 Less Tax Credit at 10% £667 £5,556 £6,333 £12,556 Total Tax Due £43,820 £7,122 £19,748 £22,555 £49,425 Effective Rate 33.4% 21.1% 23.9% 23.9% 23.4% The Livingstone Campaign have included the year 2007/08 income into the table. This seems to me to be irrelevant, other than its inclusion makes the overall 'effective  tax rate' appear higher.  For the whole of that year, Livingstone was employed as  London Mayor and all information suggests that Silvetta Ltd didn't then exist.   Now, let's take a look at what would have happened had Livingstone not declared dividends but instead had paid the same dividend as income and paid tax through PAYE, like you or me. 2007/08 2008/09 2009/10 2010/11 Total 2008 to 2011 Income from Employment £131,000 £28,312 £61,266 £69,033 £158,611 Interest Income £16 £137 £18 £33 £188 Dividend Income £0 £0 £0 £0 £0 Dividend Tax Credit @ 10% £0 £0 £0 £0 Pension Income £5,242 £21,483 £25,502 £52,227 Sub Total Income £131,016 £33,691 £82,767 £94,568 £211,026 Less Personal Allowance £5,225 £6,035 £6,475 £6,475 £18,985 Net Taxable Income £125,791 £27,656 £76,292 £88,093 £192,041 Tax at Basic Rate 10% £223 £0 £0 £0 £0 Tax at next rate 22% or 20% £7,121 £5,531 £7,480 £7,480 £20,491 Tax at Higher Rate £36,476 £0 £15,557 £20,277 £35,834 Tax on Dividends at 32.5% £0 £0 £0 £0 Tax Charged £43,820 £5,531 £23,037 £27,757 £56,325 Less Tax Credit at 10% £0 £0 £0 £0 Total Tax Due £43,820 £5,531 £23,037 £27,757 £56,325 Effective Rate 33.4% 16.4% 27.8% 29.4% 26.7% You will see that for the three years in question, Livingstone saved £6,900.  However, he and his company then went on to save National Insurance Contributions. Here the personal and Corporate savings really add-up.  The figure is in excess of £25,000 If these numbers are wrong and someone on the Livingstone campaign wishes to contest them, there is always the right of reply.  Absent that, I must conclude that the use of Silvetta Ltd has lowered the tax and NIC take for the UK.  How many NHS employees or Teachers would £32,000 pay?
It isn't just the minimizing of tax and NIC payments, when the country is struggling, that sticks  in the craw.  It is the blatant hypocrisy of someone who castigates others when they do the same and berates the government for not spending enough (of the money that they gather in taxes and continue to borrow!!)
If you like your hypocrisy served with the rankest of flavours - vote Ken.
If your nose can't stomach the stench, vote for one of the others. Oh! That Pension income.  That suggests that Ken would require a pension pot of around  £450 -500,000 to fund it.  This then accumulated while a public servant.  How big is your pot? Note also, that we haven't seen the accounts of Silvetta Ltd and don't know who is funding them.  Suggestions of Iran TV and Venezuela sometimes surface but as with so much about this, we just aren't being told.