Former CBBC star Michael Underwood has shared how presenters make the most out of their earnings and why so many stars often turn to panto during the winter months. The ex-Jungle Run host has now left his showbiz life behind him, other than being married to co-star Angellica Bell.

The 50-year-old children's entertainer has now turned his hand to teaching and sharing some industry secrets on his TikTok account. In his latest video, he opened up on what his earnings were really like while working for ITV on Ministry of Mayhem. He said: "It was a Saturday morning children's show and for that job, I was paid £120,000 per year. I was paid monthly. Well, I say I was but it actually went to my agent first and they took their cut. That, for me, was 15% plus VAT, but for some presenters, it was as much as 20% plus VAT. So they would take their bit and then send the rest to me. So, out of £10,000 a month, I would get just over £8,000 but, and if you're freelance you'll know what I'm going to say, we are responsible for our own tax."

He then explained that at those earnings he was facing 40% tax. "So, that means I should have taken 40% of my just over £8,000 every month and put it into a separate account and then used that to pay my tax bill at the end of the year," Michael said.

"But did I? Did I heck! No. I was in my 20's, I've got £8,000 in my account, I'm going to spend that. But, of course, it really isn't your money.

"A lot of my presenter friends did exactly the same thing and then at the end of the year, you're hit with a massive tax bill. Which, if you're earning, isn't so bad. If you have consistent work and the money is still coming in, then you can pay that tax bill.

"But if you suddenly lose a big job, or get a small job, or have no job then suddenly panic starts to set in."

He went on to explain that some presenters "found a way around it". They did this by "setting up a private limited company" to "pay themselves as an employee and only had to pay 20% tax."

Michael added: "So then their tax bill is reduced by like half. But, to be honest with you, I had no idea about that so I was still paying my full 40% tax."

According to HSBC Banking, in the UK, setting up a limited company can be more tax-efficient than operating as a sole trader, potentially lowering your overall tax bill. This is achieved by paying lower Corporation Tax (19%-25%) on profits rather than personal income tax (up to 45%), and taking income via a mix of salary and dividends, which saves on National Insurance (NI).

Michael also shared that some presenters also use panto as a quick way to make cash. He admitted: "If you're ever wondering why you saw so many children's TV presenters doing panto, the chances are that they probably had a tax bill to pay at the end of January!

"In fact, Paul O'Grady, he was obviously earning way more money, but I'm sure in an interview once he said, when he was asked why does he do panto, that he had a tax bill to pay."