alistair says a vastly overpaid BBC presenter, who like Lineker, has likely set himself as a limited company to avoid PAYE
mate, that’s perfectly normal
I know people in the NHS who earn over 100k and paid ridiculous tax - once you earn above 50k in the UK, the tax band jumps from 20% to 45% (might as well have not earned it) - they sought advice of an accountant who said to form a Ltd company and pay a better rate of tax.
It’s perfectly legal, and most people on high earnings need to do it.
Furthermore, a TV presenter (or many other professions) being that out-there can put you at risk of being sued for one reason or another (rightly or wrongly) and if someone was successful, they’d be suing your Ltd company which has a degree of protection - it means if they win a case and it was a more devastating blow, at least they can’t come after your family home (it is not in the Ltd company).
Gary Lineker will pay dividend tax which isn’t as high as PAYE, and he will pay Corporation Tax too. It’s still tax just less.
There are many other benefits and legal reasons to go into a Ltd.
When all’s said and done you’ve got to protect yourself and yes, pay tax, but not more than you need to or you’re just wasting your efforts as you progress.
