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David Miliband is back in (tax-efficient) business

Richard Hall
Tuesday 05 April 2011 00:00 BST
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Former Foreign Secretary David Miliband has set up a company in his name that will greatly reduce the amount of tax he will pay on his earnings, according to reports.

Once a cabinet minister under Gordon Brown, Miliband recently set up a company called The Office of David Miliband, a report in the Daily Mail has revealed. By paying all his commercial earnings into the company, Miliband will pay 20 per cent corporation tax, rather than the 40 per cent he would pay as an individual taxpayer.

The company was registered as a private limited company in December 2010, and has not yet filed any accounts.

At age 41, David became the youngest person in 30 years to hold the position of Foreign Secretary. He was also the Secretary of State for the Environment from 2006 to 2007. He has taken a back seat in politics since losing a contest for the Labour leadership to his brother Ed in September 2010, announcing following the loss that he would not stand for the Shadow Cabinet to avoid "constant comparison" with him.

He is thought to earn thousands of pounds from speaking engagements around the world, and is represented by the London Speaker Bureau, a company that provides high-profile speakers for conferences and events.

Mr Miliband's other earnings come from his role as vice-chairman of the Premier League football club Sunderland, which pays £75,000 a year. In addition to other earnings, Mr Miliband receives £65,738 for his role as Member of Parliament for South Shields.

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