Comment on Kate Nash and Lily Allen on OnlyFans should be a wake-up call for the music industry

• mannycalavera@feddit.uk ⁨3⁩ ⁨weeks⁩ ago

  That’s not how it works. It’s not about setting up a company to make yourself under the threshold. They’re only under the threshold because of how they’ve structured their finances.

  1. Set up company.
  2. Be director of company.
  3. Also be only employee of company as a separate legal entity.
  4. Get people to pay the company for any work the employee (i.e. you) does.
  5. Pay the employee (i.e. you) a maximum of just below the threshold for income tax each year.
  6. Anything else starys in the company.
  7. The company pays the director in the form of dividends (i.e. you) at a reduced tax rate any extra money it may have collected.
  8. You’ve saved income tax entirely and you’ve reduced your tax liability on anything else.

  Here’s Kate’s registered companies which are free to look up online by anyone. Whilst Kate the employee scrapes by under the tax threshold and has to graft on Onlyfans, Kate the director is in charge of a company that at the year end 2023 owed £164,586 (2022- £172,382) to the director (i.e. Kate).

  source

  • BeardedGingerWonder@feddit.uk ⁨3⁩ ⁨weeks⁩ ago

    Sorry, I’ve misunderstood I thought you were talking about the average musician earning £14k.

    source