Tax affairs of council leader probed

It emerged tens of thousands of pounds of public funds had been paid into his personal consultancy.

Labour leader Coun Khan is a 40 per cent higher-rate tax payer through lucrative allowances received from a variety of public sector roles.

But he has also received more than £48,000 from the Audit Commission which was paid into his Excol Consultancy.

Coun Khan did not respond when asked for specific details on how much tax had been paid on those earnings but in a statement said corporation tax had been paid on Excol’s profits.

Corporation tax on profits would have been paid at 21 per cent. It is not known if any income tax or national insurance was paid.

Questions surrounding Coun Khan’s tax affairs have emerged as the general issue of tax avoidance continues to rise up the political agenda, with Chancellor George Osborne this week promising to increase the number of tax inspectors.

The Taxpayers’ Alliance last night called on Coun Khan, who already receives more than £50,000 in annual allowances largely linked to his senior councillor role, to reveal details of his tax payments.

Full story on Yorkshire Post website.