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Hedge fund founder reveals £34m tax bill

David Harding, founder of Winton Capital Management, has revealed his £34 million tax bill.

Harding revealed his bill publicly in a bid to show that he is 'paying his share'. He earned an income of £87 million last year from Winton Capital and paid a tax bill that could fund the salaries of 1,500 newly qualified teachers.

He admitted to only paying 39 per cent in the last financial year, as he makes the majority of his money from dividends rather than salary, which are taxed at a lower rate. Over the year he took a salary of £16.1 million, paid income tax of £8 million and made National Insurance contributions totalling £325,000. He earned £71.3 million in dividends.

Unlike Harding, many higher earners employ complex tax avoidance schemes to minimise their annual bill, with Jimmy Carr being made an example of earlier this year for having sheltered £3.3 million from the taxman.

Harding, a former Cambridge graduate, has said it would be 'impossible' not to admit that leaving the UK had not crossed his mind but added he would not easily find 'a better place to move to.'

He finished by emphasising his belief that the budget deificit had to be paid back 'somewhere' arguing 'I'd pay any tax that was vital for my country as long as I didn't feel it was vindictive.'

Harding's move comes as Nick Clegg argued last week at the Liberal Democrat Conference for his wealth tax initiative which accuses many of Britain's higher earners of not contributing fairly.

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