Tice £91,000 tax row is ‘minor administrative error’, party claims

Tice’s £91,000 Tax Dispute Is ‘Minor Oversight,’ Party Defends

Reform UK has defended Richard Tice’s tax situation, labeling it a “small administrative oversight” rather than a significant issue. The party’s home affairs spokesperson, Zia Yusuf, acknowledged the company Tice founded missed paying £91,000 in taxes before distributing profits to him and his offshore trust. However, she dismissed the matter as a “non story.”

Dividends and Tax Reporting

The Sunday Times revealed that Tice’s firm, Quidnet REIT Limited, failed to apply a 20% levy on its dividends prior to sending profits to him and a Jersey-based trust. This shortfall was highlighted as a potential flaw in the company’s tax process. Tice argued the issue was a “technicality,” claiming HMRC ultimately received the correct tax amount.

“Any tax not paid by the company would have been overpaid by Richard himself through income tax,” Yusuf stated. “It looks like HMRC netted off in the same way.”

Labour’s Criticism

Labour framed the incident as a “major scandal” undermining Tice’s integrity. A spokesperson for the party asserted that Tice must clarify whether his business adhered to legal requirements and fully paid its owed taxes. The Liberal Democrats also weighed in, with leader Sir Ed Davey demanding immediate action: “Morally completely indefensible. Farage should sack Richard Tice immediately.”

HMRC’s Response

HMRC remained neutral, stating it would not confirm or deny ongoing investigations. The authority also avoided commenting on specific individuals involved, leaving the details to the media and political debates.

Press Conference Claims

During a Westminster press event, Tice insisted Quidnet REIT Ltd was a UK company compliant with local tax laws. He questioned the necessity of paying the highest possible tax, suggesting such a choice would be rare. “How many of your friends would choose to pay more tax than they’re legally required?” he asked journalists, framing the issue as a moral dilemma for the UK economy.

Last month, Labour had requested HMRC to examine Tice’s tax affairs after reports indicated his property firm may have saved nearly £600,000 in corporation tax. The party’s chair, Anna Turley, initiated the inquiry following the Sunday Times’ findings.

In a social media post, Tice argued the situation proved he paid the correct tax in total. He criticized the report as implying he overpaid, rather than his company underpaying. “Effectively, the paper is complaining I paid too much tax,” he wrote, emphasizing the overall fairness of the tax system.