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

Tice £91,000 Tax Row Is ‘Minor Administrative Error’, Party Claims

Reform UK’s deputy leader Richard Tice’s property company came under scrutiny after a tax discrepancy was highlighted, but the party insists it was a “minor administrative error.” According to the Sunday Times, Tice’s firm failed to remit £91,000 in tax before distributing dividends to him and his Jersey-based trust. This has sparked debate over whether the issue reflects a legal oversight or a broader financial strategy.

Party Defends Tice’s Tax Handling

Zia Yusuf, Reform UK’s home affairs spokesperson, acknowledged the oversight as “a minor administrative error” but dismissed it as a “non story” during a Sky News interview. She explained that any unpaid tax by the company would be offset by Tice’s personal income tax contributions, ensuring HMRC received the correct amount overall.

“Any tax that would have not been paid or underpaid by the company paying the dividend… would then have been overpaid by Richard himself in the form of income tax,” Yusuf stated.

Tice himself described the situation as a “technicality,” emphasizing that the Sunday Times’s report effectively accused him of paying “too much tax” rather than highlighting a company-level shortfall. He argued that the dispute reveals a misunderstanding of the tax system.

Labour and Liberal Democrats React

Labour criticized the matter as a “major scandal” undermining Tice’s “integrity and credibility,” demanding clarity on whether his business adhered to tax laws. The party’s chair, Anna Turley, had previously requested HMRC to investigate Tice’s tax affairs after claims he avoided nearly £600,000 in corporation tax via his property company.

“This is a major scandal which goes to the heart of Richard Tice’s integrity and credibility. Reform cannot ignore it,” a Labour spokesperson remarked.

Liberal Democrats leader Sir Ed Davey took a stronger stance, urging Reform UK leader Nigel Farage to “sack Richard Tice immediately” over the “morally indefensible” tax practices. Sir Ed tweeted: “Morally completely indefensible. Farage should sack Richard Tice immediately.”

Press Conference Claims

At a Westminster press conference, Tice defended his company’s actions, asserting that Quidnet REIT Limited was “a UK company paying UK tax in accordance with UK laws.” He questioned the necessity of paying the “maximum tax required,” suggesting that few individuals would voluntarily choose to exceed legal obligations.

“Richard Tice urgently needs to explain whether his business followed the law and paid the full tax it owed,” Labour added.

Tice posed a rhetorical question to journalists: “How many friends of yours would voluntarily choose to pay more tax than they are legally obliged to do?” He linked the controversy to concerns about the UK’s economic future, stating, “The idea that morally, we have got to pay the maximum tax we possibly can—therein lies the road to ruin for the UK as an economy.”