Discussion in 'UK politics, current affairs and news' started by editor, Oct 11, 2018.
This is fucking outrageous
i wonder how much the record companies made off sheeran and how much tax they paid
He has done something good then
wait a minute. i take it £27m puts you over the 40% income tax mark. i make 40% of £27,000,000 £10,800,000. rather more than sheeran's contributed to the exchequer.
not sure, badgers, not sure
Bought his long term sound engineer a Porsche for Xmas. Is involved in schemes to stop ticket touts. Pays his tax. Gets a thumbs up from me, even if his music is godawful
19% corporation tax on Ed Sheeran Ltd's profits of 27 million.
right, he's taken m'learned friends' advice on minimising his tax exposure.
It's just under 20%. He'll have set himself up as a company and be paying company director rates. Little tax-dodging wanker.
£9 million admin expenses: ED SHEERAN LIMITED - Filing history (free information from Companies House)
That's not tax dodging that's how the system works if you own your own company. You'd do the same if your company was window cleaning. Its a silly system for sure, but that's the system it is.
You also have to pay tax on (roughly 7%) dividends and personal income tax if you exceed £40k in dividends in a year.
A LTD company isn't to simply avoid tax, but to protect yourself if the company goes bankrupt.
Yeah of all the shit things Sheeran does its an odd thing to pull him up on doing exactly what everyone else does in his situation.
You could say the same about multinational corporations.
You could say the same thing about Joe Bloggs window cleaning company as well.
There are lots of reasons people operate as Ltd Co's. Protection from bankruptcy, credibility with clients, client companies only engaging with Ltd Co's, ability to acquire industry insurance, many many more..
There used to be loads of freelance sole traders in the creative industries, client companies more and more won't engage with sole traders so if you want to work freelance you have to become a Ltd Co
Whether someone should earn that much money from singing and and playing a guitar is a debatable point but different from the tax argument, on the face of it the man has paid his fair and due amount of tax.
As for his music, I find him very variable some of his stuff is really good but some of it is fucking dire.
That's rubbish. You seem to be making a comparison between complicated (but legal) tax avoidance schemes and following the rules set up by the government to encourage business. Like comparing being a non-dom with someone who has an ISA.
But ultimately it is the system that needs to be sorted regardless.
The Ed Sheeran PR machine keeps rolling on. What a guy!
The comparison was made in the OP
Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman
Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman
If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.
No, a different comparison using the same companies / persons was made.
If you found yourself paying more tax than two of the world's biggest and richest multi-national corporations, wouldn't you want people to know about it?
He (or rather, the CFO of Ed Sheeran Ltd) is just paying his tax properly like any company should. Is that such a rare thing that someone should be applauded for doing it? Meanwhile, someone leaks the story to the press, Ed once more comes out with extra shine on his "all round golden boy" trophy.
And his music is shit too.
He is only paying more tax than those companies pay in the UK though, he isn’t paying more tax than they do globally.
It’s not really a big deal that rich and famous artists, footballers etc pay more tax than many companies in the UK. As is demostrated in Sheeran’s accounts the profit margin for an individual is much higher than for companies that employ lots of people and sell lots of stuff, so you’d expect them to pay a lot more tax on their revenue.
Amazon is worth a TRILLION dollars more than all but 30 of the world's countries, they don't pay a lot of tax back in the US either, In the entire EU (one third of the world's economy) they paid $15m tax on $19.5bn last year
They're dodging tax alright, Regardless of any views on Sheeran's talents (or lack thereof) he is paying his share and Amazon isn't
It is going to be ok, he has Bob Geldof on his side
Yes I know, But the fact that he is paying more tax than two of the UK's biggest companies is insane to me, if not to you.
Plenty of big UK companies make small profits and thus pay little tax, because of all their expenses. Debenhams for example. Wealthy individuals may earn a tiny fraction of what such companies earn, but don't have expenses to speak of and so pay a comparable amount of tax. It's not really the "insane" fact you make it out to be in my opinion. Sure some companies pay a lot less tax than others, but that's a separate issue.
Only I doubt Ed Sheeran does jobs for cash in hand, forget about the tax, no questions asked.
Those who use the loopholes available, and their cheerleaders, will always say that they pay the amount legally due. What are the reasons given by the legislators as to why these loopholes exist? The only ones I can remember off the top of my head are firstly that it makes the UK an attractive place to do business, and secondly that it encourages investment and innovation. The first sounds like advocating a race to the bottom, and the second can no doubt be argued by those with greater evidence than me.
Are there other cited reasons for our myriad tax rules? (Note, I'm not asking for the true reasons, only what are voiced by the law-makers.)
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