Tony Blair has income of £12 million, spends £8 million on administration but pays only £300,000 tax

I am not Tony Blair’s greatest fan and don’t have very high expectations of him. Nevertheless, the manner in which he cashes in on his former position is breathtaking! Personal ethics are clearly unknown to him.

Paying 2.5% of his income as tax is a pretty impressive case of tax avoidance (which is probably perfectly legal and not tax evasion). But it makes him a parasite. Some parasites are useful but he is not one of them.

The Telegraph:

Former Prime Minister Tony Blair channelled millions of pounds through a complicated web of companies and paid just a fraction in tax

Official accounts show a company set up by Mr Blair to manage his business affairs paid just £315,000 in tax last year on an income of more than £12 million. In that time, he employed 26 staff and paid them total wages of almost £2.3 million. ….

… Tax specialists who have studied the accounts have told The Sunday Telegraph that the tax paid in 2010 of £154,000 and £315,000 in 2011 appears low because costs have been offset against the administrative costs, which remain largely unexplained.

One City accountant, who did not wish to be named, said: “It is very difficult to see what these administrative costs could be. It is a very large amount for a business like this. I am sure it is legitimate but it is certainly surprising.

“The tax bill of £315,000 is explained by the large administrative costs that are being treated as tax allowable.”

Richard Murphy, a charted accountant who runs Tax Research LLP and has studied Mr Blair’s company accounts, said: “There is about £8 million which we don’t know where it goes. That money is unexplained. There is no indication at all why the administration costs are so high. What has happened to about £8 million which is being offset against tax?” …

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5 Responses to “Tony Blair has income of £12 million, spends £8 million on administration but pays only £300,000 tax”

  1. willesden Says:

    so he’s paying 30pc tax on £1million profit…where exactly is the scandal?

    big difference between turnover and profit.

    he is being audited by KPMG who would not risk their reputation for such small amounts and on a person notorious like blair who journos are just waiting to expose somehow

    forgetting that its normal to pay around that amount of tax on those earnings, not even close to suspicion raising levels, even if there was something dodgy both kpmg and hmrc cannot see any problem.

    i dont like the man either, lied about war and is a religious christian so he must be loopy, but fail to see the news story here….. (so far )

    take the fact we cant help but hate the man who is going round with his cheesy grin making money from the most funny ways like giving speeches about peace, LOL, but so far all I see is a man who as UK registered tax payer who brought in 100s of thousands each year to our tax coffers. more than we can say for 99.99pc of the country

    • ktwop Says:

      If I could subtract all of my costs from my income (including 67% for administering myself and my establishment) and pay 30% on the “profit” I would be quite happy!!!

  2. willesden Says:

    ok so why dont you do just that? its called running a business in the UK lol

    there are millions of business owners doing JUST that with even LESS margin. companies do have to pay bills, staff, whatever…

    even if you choose to take an 8 million salary for yourself from your own company its perfectly legit. but the taxman doesnt care because he squeezes you anyway in income tax instead of corporation tax. taxman is the biggest mafia don. only two things are sure as they say: death and taxes lol

    you dont have to run a public company where all exact expenses have to be shown to all your shareholders and the public, with a private company its between you, your auditor and HMRC.

    its really not that easy to fudge expenses to any great deal, the taxman is always trying to get more money so always looking to catch dodgy businesses out.

    as a side note i hate the taxman more than tony blair lol

  3. willesden Says:

    personally i think 30% tax in business is too high. any higher and may as well set up business in another country where you pay less tax. now we live in a global marketplace and with the internet why would any company pledge allegiance to any country?

    if a company chooses to pay their taxes in the UK for the most part the country should be grateful because without them there would first off be no coporation tax paid here and second there would be no jobs for the workers to pay their taxes from either. where does the money come from then? we need to encourage businesses to set up here…sometimes we give international companies tax breaks to encourage them to stay here….its all about finding the happy medium of getting as much tax as possible from businesses without scaring them away.

  4. willesden Says:

    what I dont understand is that why people rant on about business owners trying to pay less tax within the legal guidelines (which is logical) but completely ignore the millions on benefits etc. any man who claims even 1 pound from all the rest of us working people and pays 0 into the system is more of a drain to us than a business owner paying a 1 pound instead of a potential 1.50 in tax.

    tony blair is a dick for other reasons but come on he just paid over 300000 to our country to share to everyone. ok maybe he could have paid more but I bet 99% of us cant generate 12 million worth of sales, with around 10% profit in order to pay 300k in tax.

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