MPs have been found to be challenging large amounts of money from private consulting work through personal service companies, which may have significantly reduced their tax bills.
This type of arrangement can help avoid a personal income tax rate of 45%, and means the personal service company only pays tax at 19%
The government has pledged to tighten the rules around second Jobs for MPs, such as the amount of money taken home and the amount of hours worked.
MAS opinion: IR35 anti avoidance legislation should apply to MPs as well!
