Nigel Farage’s company pays him £50,000 to rent a studio at his own property in an arrangement that could allow him to lower his tax bill, it is understood.
The Reform UK party leader’s personal service business, Thorn in the Side Ltd, agreed last May to pay Farage £10,000 each year for five years for the ‘rental of studio premises’, the company’s accounts show.
If Farage received just 1p more from the agreement a year, he would have to declare the funds as it would breach the financial threshold MPs are given.
The arrangement also provides Farage – who is the company’s only director and owner – potential tax benefits because he can withdraw £50,000 as rent instead of from his salary.
He would then not have to pay tax on the money as the rent would be taken out of the company’s corporation tax bill.
A payment of the same amount withdrawn as a salary payment would be deducted from the corporation tax bill but would have national insurance taken out too.
The rental payment controversy brings Farage’s property declarations back into the limelight as well.
Across Kent, Surrey and Essex, Farage and his wife own five properties, yet only two are registered as a members’ interests, the Times reported.
Nigel Farage has come under pressure over unregistered donations of cash and support
The Reform UK party leader has been scrutinised for not declaring support from convicted criminal George Cottrell
Farage will go head-to-head against comedic candidate Count Binface in the Clacton-by-election
Scrutiny over Farage’s finance come after he failed to declare a £5million personal gift from Reform UK donor, Christopher Harborne.
He did not refer himself to the Parliamentary standards watchdog over the gift he received from the Thailand-based cryptocurrency-billionaire in 2024.
The party leader’s undeclared support from convicted criminal George Cottrell, known as Posh George, brought Farage further criticism, but he dismissed the allegations as an ‘establishment hit job’.
Mr Cottrell is reported to have recruited and paid three staff members to work for Farage’s social media team before the general election in 2024.
He also continued to allow him to use a five-storey Georgian property he rented near Buckingham Palace.
In wake of the controversy, Farage announced that he will resign as MP for Clacton-on-Sea and fight a by-election.
After his political rivals in the constituency vowed to boycott the contest, he will go head-to-head against long-time comic candidate, Count Binface, who aptly wears a bin on his head.
