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How much will Boris make from the 50p tax cut?

Johnson's tax return shows that he will make around £16,164 from the move.

New Statesman
Mayor of London Boris Johnson. Photograph: Getty Images.

Now Boris Johnson has published his tax return, we can work out exactly how much he'll make from the abolition of the 50p rate. Total earnings of £473,280 in 2010-11 (£339,625 of which came from freelance work) mean that Johnson can expect to make around £16,164 from the reduction in the top rate to 45p.

Evidence, perhaps, of why the mayor has consistently lobbied against the 50p rate, once comparing it to "Stalin's assault on the kulaks".

24 comments

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mbrecker's picture

What you should be asking is this. If Boris believes in Thatcher/Reagan trickle down economics so much, what whas he personally done with his tax cuts that he's received? Did he use these to hire people for his TV production company? Bash Ken all you like. However, at least Ken has put people to work.

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Herbert's picture

How much would Livingstone have gained from the cut had his money been paid to him directly and come under PAYE?

Eddy S's picture

the core issue here is that ken has avoided tax by running a service company. i think we need to have high moral standards and on those ken should not represent the left otherwise we are all exposed as hypocrites.

the best thing for london actually would be if ken drops out on these grounds, i would have much more respect for him, personally i would like to see a strong young candidate like chuka umunna.

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

London Exile's picture

The NS headline focuses on how Boris gets some extra money from the 45p tax rate, but why pay no attention to Ken's (perfectly legal) tax avoidance activitIes by channeling his earnings through a service company? The issue is hypocrisy. Ken's been going round saying people who avoid tax in the manner he has should not be allowed to vote. Where is the NS normal laser like focus on political hypocrisy and self serving?

Ben S's picture

Boris' tax windfall from the 50p tax cut looks to be more than the total income of over 400,000 London households. And we're all in this together!

Looking at the latest figures from the GLA (these are based on 2009 stats) 425,694 households had an income of under 15k:
http://data.london.gov.uk/datastore/applications/focus-london-income-and...

Tim Johnson's picture

From records at companies house it appears that Silveta - Ken's company - is half owned by his wife.

So it looks like she is getting £60k per annum in dividends as well - one assumes as a result of Ken's media activities. That way instead of paying tax at higher rates she could (depending on how much other income she has) take advantage of her lower rate band.

Legal? Yes. But hard to defend if you like to attack tax avoiders.

Barry Johnson's picture

What's that Tim? No, relation of Boris I assume.

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