Nigel Farage’s company ‘pays him £50,000 over five years in rent for studio at his own property’ in arrangement that could allow him to lower his tax bill
Nigel Farage’s company is understood to have paid him £50,000 to rent a studio on his own property in an arrangement that could have allowed him to reduce his tax bill.
Thorn in the Side Ltd, the Reform UK party leader’s personal services company, agreed last May to pay Farage £10,000 a year for five years for the ‘rental of studio facilities’, according to the company’s accounts.
If Farage gets just 1p more a year from the deal, he will have to declare the funds as it would breach the funding threshold given to MPs.
The deal also provides potential tax benefits for Farage, who is the sole director and owner of the company, as he can withdraw £50,000 in rent rather than salary.
In this case, he would not have to pay tax on the money because the rent would be deducted from the company’s corporate tax bill.
The same amount withdrawn as a salary payment will be deducted from the corporate tax invoice, but national insurance will also be taken out.
The rent payment debate also brings Farage’s ownership statements back to the fore.
Farage and his wife own five properties in Kent, Surrey and Essex, but only two of these are registered as members’ shares, the Times reported.
Nigel Farage under pressure over unregistered cash donations and support
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Farage to face comedy candidate Count Binface in Clacton election
The scrutiny into Farage’s finances comes after he failed to declare a personal gift of £5 million from Reform UK donor Christopher Harborne.
He did not refer himself to the Parliamentary standards watchdog for the gift he received in 2024 from the Thailand-based cryptocurrency billionaire.
The party leader’s undisclosed support from convicted criminal George Cottrell, known as Posh George, brought further criticism to Farage, but he denied the allegations, describing them as a “regular job”.
Mr Cottrell has reportedly recruited and paid three staff to work on Farage’s social media team ahead of the 2024 general election.
He also continued to let her use the five-storey Georgian property he rented near Buckingham Palace.
Following the debate, Farage announced that he would resign as MP for Clacton-on-Sea and stand in a by-election.
He will go head-to-head with long-time candidate comedian Count Binface, who wears a bin on his head, after political rivals in his constituency vowed to boycott the contest.
