Richard Tice is under scrutiny to promptly clarify allegations that his company violated tax laws by neglecting to pay over £90,000 in taxes. As the deputy leader of Reform UK, Tice reportedly failed to fulfill the required tax obligations on dividends before they were funneled to him and his offshore trust.
According to reports from the Sunday Times, Tice, who serves as the business, trade, and energy spokesperson for Nigel Farage’s party, received at least £91,000 in excess payments due to the alleged neglect. The accusations center around his property investment firm, Quidnet REIT Ltd, which obtained a special legal status as a real estate investment trust (REIT).
REITs are granted a tax exemption period and are mandated to deduct a portion of dividends, known as withholding tax, before distributing payments to shareholders. The law stipulates that withholding tax should be charged at the 20% basic rate of income tax.
Allegedly, Tice’s firm breached this regulation by failing to withhold tax on dividends on multiple occasions between 2020 and 2021, resulting in a tax shortfall of approximately £91,200. Tice asserted that he paid all taxes at the highest rate on dividends received and that HMRC had been duly compensated.
Tax expert Dan Neidle highlighted the simplicity of the rules governing property taxation, emphasizing the importance of compliance. Labour’s chair, Anna Turley, labeled the situation a significant scandal and urged Tice to clarify why his company failed to pay the owed taxes promptly.
In response, Tice defended his actions and criticized the Sunday Times for attempting to tarnish his reputation. He insisted that the correct amount of tax had been remitted to HMRC. This follows a previous investigation into his firm’s tax status, where Tice faced accusations of evading corporation tax payments.
Reform UK’s home affairs spokesman, Zia Yusuf, downplayed the recent allegations as a minor administrative error made by the company rather than Tice personally. He reiterated that Tice paid income tax on all dividends received, ensuring that HMRC received the correct tax amount.
Labour criticized Yusuf for dismissing the seriousness of the allegations and questioned Tice’s capability to manage tax matters effectively. The ongoing scrutiny raises concerns about Tice’s credibility and integrity, particularly in handling financial affairs.