The tax effects of trading through a company are a bit complex. For example there can be a slightly beneficial VAT rate.But broadly, the difference is that as an employee you pay income tax and NI at the various rates applicable. In a company, the company is paid and is liable for corporation tax on its profits. To get your hands on the money, either the company pays you a salary (income tax and NI again) or it has to pay you a dividend, which is taxable as income. You get to choose the timing of payments and thus can shift your income between tax years if it helps. Various people put their work through such a service company - contract programmers, media personalities, freelancers for example - usually people who don't just work for one employer but have several clients. To complicate matters further, there is the IR35 legislation which is designed to penalise people routing their employment through a service company simply to obtain a tax advantage. It's all a bit of a minefield - usually your accountant tells you which to do, according to your own personal circumstances and tax position.An MP cannot provide his/her services ie represent his/her constituents in parliament via a company - he/she has to work directly and be paid directly as an MP.It is possible though that an MP might use a service company through which to route other work - paid speaking engagements, consultancy advice etc. One would expect all such work to be declared on the register of members' interests.To have such a company receiving political donations would be a bit odd - donations are supposed to fund campaign expenses, not be a profit/income for the candidate.Companies are also set up for political groupings (a classic example being the Brexit Party Ltd) but not as fronts for single individuals.
Michael Winstanley ● 1147d