Nigel Farage is directing earnings from his media work, including his GB News show, through a private company, allowing him to pay a lower tax rate on profits compared to standard income tax.
As leader of Reform UK, the Clacton MP channels payments from his TV appearances and other roles into his firm, reducing his tax liability to 25% corporation tax rather than the 40% income tax rate he would otherwise face. He also benefits from deductible expenses.
Farage, who earns £94,000 annually as an MP, has previously criticised tax avoidance, calling those who engage in it the "common enemy." He has also faced criticism for using an offshore trust in the past.
In 2014, he said that while some tax avoidance was unacceptable, most legal methods were reasonable, stating that “nobody voluntarily pays anything to HMRC” while defending minimising taxes within the law.
Records show he indicated owning a home in his constituency last year, though the property is registered in his partner’s name, allowing him to avoid higher stamp duty rates applicable to additional homes.
The use of personal service companies, while legal, has drawn criticism from across the political spectrum as a means of reducing tax obligations. Farage has not disclosed his 2023/24 tax returns.
Major broadcasters have restricted such arrangements in recent years, and tax authorities have tightened off-payroll regulations to curb similar practices. According to parliamentary records, Farage has earned nearly £400,000 from GB News since August 2024 for around 190 hours of work—equating to over £2,000 per hour.
His company, Thorn in the Side Ltd, receives all payments for his media appearances. Farage is the sole director and shareholder. His other income includes roles as an ambassador for gold investment firms, international speaking engagements, and a column for *The Daily Telegraph*.
Recent accounts indicate the company held £1.7 million in cash as of May 2024, an increase of over £1 million from the previous year, along with two investment properties. The firm’s value has risen sharply alongside Farage’s political prominence, now standing at £2.6 million—up £2 million since 2021.
A spokesperson for Farage stated: “Thorn in the Side Ltd has operated for 15 years, engages multiple contractors, and functions as a legitimate business.”
Farage has been relatively muted in his criticism of Deputy Prime Minister Angela Rayner over her tax-related controversies. While he wished her “jolly good luck” when the Conservatives targeted her earlier this year, he later questioned her political survival after reports surfaced about unpaid stamp duty on a property.
The Reform leader is scheduled to speak at his party’s conference on Friday.
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