Farage has resigned as an MP for Clacton?

"The secretive crypto firm backed by Farage's biggest donor"

Yes, more nasties emerge.

www.bbc.co.uk/news/articles/cg4w6wqye32o

DaisyAnneReturns

From a personal view I do agree with Graphite's comment "I do think the media need to be careful poring over every aspect of his finances as it does start to look petty and plays into his hands of wanting others to see this as an “establishment” conspiracy against him.", and yet I would like this to start a proper investigation into tax loopholes. That's me in my normal position I'm afraid - firmly on the fulcrum!

Well said!

From a personal view I do agree with Graphite's comment "I do think the media need to be careful poring over every aspect of his finances as it does start to look petty and plays into his hands of wanting others to see this as an “establishment” conspiracy against him.", and yet I would like this to start a proper investigation into tax loopholes. That's me in my normal position I'm afraid - firmly on the fulcrum!

I asked AI. The answer was as follows:
The headline is eye-catching, but the underlying arrangement is more mundane than it first appears. The interesting question is whether it's simply tax planning or whether it raises transparency or ethical concerns.

Here's what appears to have happened

According to The Times, Nigel Farage's personal company, *Thorn in the Side Ltd*, entered into an agreement to rent studio space in a property that Farage himself owns. The company agreed to pay him **£10,000 per year for five years**—£50,000 in total—for use of the studio. ([The Times][1])

### Why would someone do this?

There are several legitimate commercial reasons why someone might structure things this way:

* If your company needs office or studio space, it can rent premises from a third party.
* If you personally own suitable premises, the company can instead rent part of your property from you.
* This is quite common among owner-managed businesses, provided the rent reflects the market rate.

For example, many consultants, photographers, YouTubers and small business owners rent a home office or studio to their own limited company.

### The tax advantage

The reason this attracts attention is that it can be more tax-efficient.

Instead of taking another £10,000 as:

* salary (which may involve National Insurance), or
* dividends (which are paid from profits after corporation tax and may incur dividend tax),

the company pays *rent*.

That means:

* the company normally deducts the rent as a business expense before paying corporation tax;
* Farage personally receives rental income, which is taxed under the rules for property income rather than salary or dividends.

Depending on someone's overall circumstances, this can reduce the combined tax bill compared with taking the same money another way. That's why The Times described the arrangement as potentially lowering his tax bill. ([The Times][1])

### Is it legal?

Assuming:

* the company genuinely uses the studio,
* the rent is a genuine market rent,
* and the income is declared correctly to HMRC,

then arrangements like this are generally lawful and are not unusual among small companies.

If the rent were artificially high or the space weren't genuinely used for business, HMRC could challenge it.

### Why is it controversial?

The criticism isn't simply that he's renting to himself.

Rather, critics argue that:

* it is another example of aggressive tax planning by a senior politician;
* because the payment is between Farage and his own company, it sits outside some of Parliament's transparency rules for MPs' financial interests, making it less visible than other forms of remuneration. The Times specifically says the arrangement falls outside parliamentary transparency rules. ([The Times][1])

Supporters would likely respond that:

* he's using a perfectly legal structure available to any business owner;
* many MPs and business owners operate through limited companies;
* tax planning within the law is different from tax evasion.

### Is the headline framed?

To some extent, yes.

"**Paying himself £50,000 in rent**" sounds as though money is simply moving from one pocket to another—which, economically, it largely is.

A more neutral description would be:

> "Farage's company has agreed to rent studio space from a property he personally owns, paying £10,000 a year for five years."

That wording makes clear that there are two separate legal entities involved: Farage personally and his limited company. The real question is not whether he is "paying himself", but whether the rent reflects a genuine commercial arrangement and whether the tax treatment is appropriate. Those are the issues that determine whether this is routine tax planning or something more contentious.

[1]: www.thetimes.com/uk/politics/article/nigel-farage-rent-studio-own-property-qbl583062?utm_source=chatgpt.com "Nigel Farage paying himself £50000 in rent for studio at ..."

I agree, it’s chickenfeed in the great scheme of things. In effect he’s just drawing media money he had already been paid, in a tax efficient manner - which he is entitled to do.

Whether the rent is commensurate with the proportion of the property given over to his home media output or income from the latter would be up to HMRC to consider.

I do think the media need to be careful poring over every aspect of his finances as it does start to look petty and plays into his hands of wanting others to see this as an “establishment” conspiracy against him.

The far biggest picture is Cottrell and Harborne and his and Reform's involvement with them.

Thanks for the Times link, Graphite.

Although the Times speaks of the possibility of tax 'savings' of £1,000s over time, £10,000 pa seems like rather small fry for making tax avoidance operations on compared to the income he is raking in from various sources. But I suppose that if you look after the pennies the pounds will look after themselves.

Cossy , he got time as he's so busy recording, advising, etc, for which he is getting paid.I'm sure we don't know the whole of these, who is paying him for what .Also he is probably be on the lookout for further remuneration.
You are quite right pointing out members of the Royal family do walkabouts. I don't think we should forget that people going to work have sometimes done so under threats from terror organisations. They've kept working.
I think the Farage should remember the saying, if you can't stand the heat get out of the kitchen

Notwithstanding surgeries, security aside, what is his excuse for not turning up for 77 consecutive votes in the HoC??

The King and Queen Consul and all other working members of the RF still do walkabouts and turn up in many public places…… Just saying!

Wyllow3

Checked
"Nigel Farage does not hold virtual surgeries on a fixed schedule. Instead, his team handles casework and resident communications on a rolling, case-by-case basis.

Clacton constituents must contact his office via email or phone, which his team may then choose to escalate to a Zoom video call if a direct virtual meeting is required".

Starmer still hold them in person. Is Farage really at more risk?

It’s all a bit hit and miss and many MPs still hold “open” public surgeries, where no appt is needed and people can just turn up and they hold 1-2-1 face to face appts via appointment, or you can contact them via their email or via their constituency offices.

My view, and it’s only a view and my own opinion, is Farage simply either cannot be bothered, or simply isn’t around in the UK enough, to do surgeries.

🤷🏻‍♀️🤷🏻‍♀️

NotSpaghetti

Today's headline in the Times:
Nigel Farage paying himself £50,000 in rent for studio at own property

Can't read it as behind a paywall.
Maybe someone takes this paper?
I assume it's a studio flat - I can't imagine he's taken up art.

Or photography!

Bit of a click bait goady headline!

The problem is Farage had good press coverage until (alleged) dodgy details and the press are like a dog with a bone, especially as he didn’t just say “I forgot to declare, or I didn’t realise I had to declare, the £5m gift”

He was late declaring other monies right at the beginning of his tenure, the man thinks he’s untouchable and his arrogance has led journalists to nosy into everything.

No sympathy at all for Farage (or indeed any other MP behaving in a manner such as this and truly believe “rules” don’t apply to them!)

This from The Times explains more about the transparency and tax avoidance angles.

Another thing for the Parliamentary Commissioner for Standards and HMRC to look at.

removepaywalls.com/https://www.thetimes.com/uk/politics/article/nigel-farage-rent-studio-own-property-qbl583062

NotSpaghetti

Thanks Maisie will look st this shortly.

I know you can get relief for (say) a home office.

But it’s not Farage who is renting it, it is his company, so I don’t see how that would apply.

But I’m sure someone will have an authoritative answer😆

(P.S I’m a bit 😳 about posting a DM link😂)

Thanks Maisie will look st this shortly.

I know you can get relief for (say) a home office.

NotSpaghetti

Today's headline in the Times:
Nigel Farage paying himself £50,000 in rent for studio at own property

Can't read it as behind a paywall.
Maybe someone takes this paper?
I assume it's a studio flat - I can't imagine he's taken up art.

As far as I can make out it is part of a tax minimisation scheme. Farage isn’t renting the studio, it is his comany, Thorn in the Side, which has rented it for 5 years at £10,000 a year.

I don’t quite understand what the tax advantage is, the company can claim it as a business expense, which will reduce its profit and so the amount liable for corporation tax, but he should have to pay tax on the rental income at a highervrate than corporation tax. However, I’m nowhere near being a tax expert so mybe I’ve got it wrong.

Anyway, as far as I can tell he hasn’t done anything illegal here. Businesses do things like this all the time.

The DM has the story

www.dailymail.com/news/article-15969669/Nigel-Farages-company-pays-50-000-rent-studio-property-lower-tax.html

Today's headline in the Times:
Nigel Farage paying himself £50,000 in rent for studio at own property

Can't read it as behind a paywall.
Maybe someone takes this paper?
I assume it's a studio flat - I can't imagine he's taken up art.

fancythat

I dont know.

I think ordinary people in the Uk are not really best placed to know that.

I hesitate sometimes about Prince Harry and his family.
Are they right to get alarmed about their security arrangements? Or ar they not?

Are they right to get alarmed about their security arrangements? Or ar they not?

Ann Widdecombe.
But that may have nothing to do with Politics.

If it does, it will spook all MPs, let alone Nigel Farage.

Metropolitan Police also now investigating Cottrell's mother regarding her financial dealings with Farage/Reform UK.

Reform, the grift which keeps on grifting haha

I suggest as there is a "Harry" thread, this ne stays Farage?

Another Reform MP now in the spotlight:

"Met investigates donation to Jenrick's Tory leadership campaign...

Police are investigating a donation given to Robert Jenrick's Conservative leadership campaign in 2024, BBC News understands.

The Electoral Commission had reportedly been looking at claims £37,500 donated to Jenrick's campaign originated overseas. That information was passed from the commission to the Metropolitan Police in January this year.
The force confirmed it had now launched a formal investigation "concerning donations connected to a political party's leadership campaign", as first reported by the I paper"

(now on Beeb front page)

I dont know.

I think ordinary people in the Uk are not really best placed to know that.

I hesitate sometimes about Prince Harry and his family.
Are they right to get alarmed about their security arrangements? Or ar they not?

Checked
"Nigel Farage does not hold virtual surgeries on a fixed schedule. Instead, his team handles casework and resident communications on a rolling, case-by-case basis.

Clacton constituents must contact his office via email or phone, which his team may then choose to escalate to a Zoom video call if a direct virtual meeting is required".

Starmer still hold them in person. Is Farage really at more risk?

Of course he could hold constituency surgeries virtually

Do we know if he does or doesnt?

That’s far too reasonable and rational for Farage’s. Of course he could hold constituency surgeries virtually, eg using Microsoft teams link. He records cameo videos to make money and media statement videos in fields for goodness sake.

He probably just can’t be bothered.

Nandalot

In a constituency office not on!

It’s my understanding that this is no constituency office, but your idea is great!

In a constituency office not on!