Nigel Farage, the Reform UK leader and MP for Clacton, is using a private company to reduce his tax bill on earnings from his GB News show and other outside employment. The arrangement, common among television stars, has been criticised across the political spectrum and is increasingly frowned upon by major broadcasters.
Farage diverts payments from his prime-time TV show into his company, Thorn in the Side Ltd, paying 25% corporation tax on profits instead of 40% income tax, and offsetting some expenses. The company has £1.7m in cash and is worth £2.6m, up £2m since 2021. Farage has made nearly £400,000 from GB News since August 2024, suggesting a rate of over £2,000 per hour.
Farage has previously criticised tax avoidance as the “common enemy” but has also defended legal tax avoidance. He declined to publish his 2023/24 tax returns. Last year, he claimed to have bought a house in his constituency, but the property is owned by his partner, allowing him to avoid higher-rate stamp duty.
The use of personal service companies is legal but has been criticised as a way to reduce tax bills. Broadcasters including the BBC, ITV, and Channel 4 have cracked down on the practice, and HMRC has tightened rules around off-payroll working (IR35). A spokesperson for Farage said Thorn in the Side Ltd is a properly functioning company that renders services for several contractors.
Farage is due to speak at his party’s conference on Friday in Birmingham. Earlier this week, he was in the US, where he praised Donald Trump’s immigration policies and called the influence of Islam in the UK a “catastrophe”.
