Nadhim Zahawi says HMRC concluded tax error was ‘careless and not deliberate’ after facing calls for his sacking

Published

2 years ago

January 21, 2023

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Nadhim Zahawi says HMRC concluded his tax error was “careless and not deliberate” after Labour called for him to be sacked over his finances.

The Tory chairman and cabinet member released a statement saying he wanted to “address some of the confusion” about his finances.

He said his father took founder shares in YouGov and that HMRC later “disagreed about the exact allocation”, leading him to “settle the matter and pay what they said was due”.

“They concluded that this was a ‘careless and not deliberate’ error,” he said.

“So that I could focus on my life as a public servant, I chose to settle the matter and pay what they said was due, which was the right thing to do.”

Questions have swirled following an article in The Sun on Sunday, which claimed a seven-figure payment was made by Mr Zahawi to end a dispute with the taxman “after scrutiny of his family’s financial affairs”.

Mr Zahawi also said in his statement: “As a senior politician I know that scrutiny and propriety are important parts of public life. Twenty-two years ago, I co-founded a company called YouGov. I’m incredibly proud of what we achieved. It is an amazing business that has employed thousands of people and provides a world-beating service.

“When we set it up, I didn’t have the money or the expertise to go it alone. So I asked my father to help. In the process, he took founder shares in the business in exchange for some capital and his invaluable guidance. Twenty-one years later, when I was being appointed chancellor of the exchequer, questions were being raised about my tax affairs. I discussed this with the Cabinet Office at the time.”

The polling company, which Mr Zahawi co-founded before entering politics, is headquartered in the UK, but has operations in Europe, North America, the Middle East and Asia-Pacific. It is thought to have a net worth of around £100m.

Pressure has been mounting on the 55-year-old politician to respond to questions over his tax affairs, however up to now he had refused to comment.

The Guardian first reported that he paid a 30% penalty, taking the estimated total tax bill to more than £4.8 million.

Ahead of his statement, Labour had renewed calls for the Prime Minister to take action, and sack Mr Zahawi.

Speaking at the Fabian Society conference on Saturday, Labour’s shadow chancellor Rachel Reeves said: “A few months ago… He was chancellor of the Exchequer and responsible for Britain’s tax affairs and tax collection, and we now find that he wasn’t so keen to pay himself.

“So, if the Prime Minister wants to stick by his commitment for integrity, honesty and professionalism, he should do the right thing and sack Nadhim Zahawi.”

Mr Zahawi was Chancellor between July and September last year, in the closing days of Boris Johnson’s premiership.

However, Deputy Prime Minister Dominic Raab defended Mr Zahawi, telling Sky News: “I can’t speak for the personal tax affairs of a colleague, but what I would say is that Nadhim has been very clear that he’s paid all the tax that he’s owed, that he’s paid it on time, that there’s nothing outstanding due, and I think that’s of course right and proper.

“If there’s further questions, of course, I’m sure there’ll be the proper transparency.”

Asked if Mr Zahawi will still be in his post in a month, Mr Raab said: “A month’s a long time in politics. I certainly hope so.”

A spokesman for Mr Zahawi previously said his taxes were “properly declared and paid in the UK” and the minister had “never had to instruct any lawyers to deal with HMRC on his behalf”.

Rishi Sunak also defended his colleague at Prime Minister’s Questions (PMQs) on Wednesday, saying Mr Zahawi “has already addressed this matter in full and there’s nothing more that I can add”.

The spotlight on Mr Zahawi’s tax affairs has rounded off a challenging week for the PM, who on Friday was fined by police for not wearing a seatbelt in the back of a moving car.

UK

Queen Camilla withdraws from engagements after becoming unwell with chest infection

Published

6 hours ago

November 5, 2024

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Queen Camilla withdraws from engagements after becoming unwell with chest infection

The Queen is unwell with a chest infection and has withdrawn from her engagements this week, Buckingham Palace has announced.

A palace spokesperson said Camilla’s doctors “have advised a short period of rest” and added that “with great regret, Her Majesty has therefore had to withdraw from her engagements for this week”.

They added the Queen “very much hopes to be recovered in time to attend this weekend’s Remembrance events as normal”.

“She apologises to all those who may be inconvenienced or disappointed as a result,” they said.

It is understood the Queen is currently resting at home and is under doctor’s supervision.

Birgitte, the Duchess of Gloucester, has stepped in on Camilla’s behalf to attend the annual opening of the Field of Remembrance at Westminster Abbey on Thursday.

The Queen has also withdrawn from a Buckingham Palace reception for Olympic and Paralympic athletes hosted by the King on the same evening.

Camilla recently returned from an overseas tour of Australia and Samoa. No further details regarding her illness or treatment have been released.

UK

Labour confirms U-turn on proposed ban on smoking and vaping in pub gardens

Published

6 hours ago

November 5, 2024

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Labour confirms U-turn on proposed ban on smoking and vaping in pub gardens

A proposed ban on vaping and smoking in pub gardens will not go ahead, the health secretary has confirmed.

Wes Streeting said the Labour government would not press ahead with the idea after it was floated over the summer and caused an outcry within the hospitality industry.

Back in August, Sir Keir Starmer said his government was considering a ban on outdoor smoking in a bid to bring down the 80,000 preventable deaths caused by smoking in the UK each year.

The ban would have covered smoking in outdoor restaurants and outside sports venues, hospitals, nightclubs, and in some small parks.

But speaking to Sky News this morning, Mr Streeting confirmed the U-turn and said: “We’re not going ahead or not proposing to go ahead with a [smoking] ban on outdoor hospitality.”

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He said the policy idea was a “leak of government discussion” over the summer and promoted a “really good debate about whether or not it would be proportionate” when taking into account the public health benefits, but also the potential downsides.

“I think people know the UK hospitality sector has taken a battering in recent years,” he added.

“And we don’t want to add to their pressure – so we’re not proposing to go ahead with an outdoor hospitality ban at this time.”

However, Mr Streeting did say that the smoking ban would be extended to some outdoor spaces, including schools, hospitals and children’s playgrounds.

It comes as the government today introduces a “groundbreaking” bill that aims to create the “first-ever smoke-free generation”.

The Tobacco and Vapes bill, which was first introduced by Rishi Sunak but was dropped due to the general election, will prevent anyone who was born on or after 1 January 2009 from buying tobacco.

The ban will effectively raise the legal age for buying cigarettes in England by one year every year, until it applies to the whole population.

The policy to create a “smoke-free generation” was seen as a defining one of Mr Sunak‘s premiership and caused controversy within Tory ranks, particularly the more libertarian wing of the party.

The bill will also create limits on the sale and marketing of vapes to children, while separate environmental legislation will be introduced to ban the sale and supply of single-use vapes by next summer.

The health secretary said “clamping down on the scourge of youth vaping” with licensing, tougher enforcement and a ban on the marketing of vapes to children and young people was “happily, an area of broad cross-party consensus”.

“I first proposed the generational ban for children, when I was the shadow health secretary,” he said.

“To my delight and surprise, Rishi Sunak took it up as prime minister and Conservative leader.

“I hope that cross-party support will sustain a new leader of the Conservative Party, but we’ll find out in the coming weeks.”

UK

Powys crash: Safety system ‘blocked’ before fatal train collision

Published

6 hours ago

November 5, 2024

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Powys crash: Safety system 'blocked' before fatal train collision

A safety system was “blocked” during a fatal train crash in Powys, an initial investigation has found.

The Rail Accident Investigation Branch (RAIB) has published its initial findings into last month’s collision, in which one person died.

David Tudor Evans, 66, was described as a “lovely guy, full of life and enjoyment”.

A further 15 people were taken to hospital for treatment after the crash near Talerddig, police said.

The collision – at around 7.26pm on 21 October – involved the 6.31pm Transport for Wales service from Shrewsbury to Aberystwyth and the 7.09pm Transport for Wales service from Machynlleth to Shrewsbury.

The RAIB said the units were fitted with wheel slide protection systems – described as being similar to anti-lock braking systems in cars – and an automatic sanding system.

Sand is discharged automatically via hoses when a wheel slide is detected during braking – creating more friction at the wheel-rail interface.

The on-train data recorder shows the wheel slide started during braking and was also present after the driver made an emergency brake demand.

An inspection of the sanding system fitted to Aberystwyth-bound train 1J25 showed the leading vehicle’s sanding hoses were blocked.

The RAIB says they were apparently unable to discharge sand.

The ongoing investigation is also looking at the speed at which the trains were travelling when they collided.

Initial enquiries suggest the westbound train was travelling at a speed of between 15mph and 24mph, while the eastbound train was travelling at a speed of 6mph.

The RAIB says its investigation will look at the sequence of events which led to the crash.

As part of the probe, the agency will look at factors including the actions of those involved, the level of wheel-rail adhesion, and the behaviour of both trains during and after the crash.

In a joint statement, Transport for Wales and Network Rail said they have “fully cooperated” with the British Transport Police, the Office of Rail and Road and the Rail Accident Investigation Branch.

“As investigations are currently still ongoing, we’ll continue to work together with investigators to understand what happened and await the full conclusion and recommendations of the investigation,” a spokesperson said.

The spokesperson said safety was the “main priority” for both companies and they had “carried out enhanced checks to the trains and the railway line”.

“At this early stage of the investigation, it’s fundamental that we await the findings of the full report and show sensitivity towards our customers, colleagues, the local community and the families of those affected by the incident,” they added.