Reform UK deputy leader Richard Tice is embroiled in a heated political controversy after his property company failed to pay £91,000 in required taxes before distributing dividends, a situation his party dismisses as a "minor administrative error."
According to reports from The Sunday Times, Quidnet REIT Limited—a property investment firm founded and owned by Tice—did not pay a mandatory 20% levy on dividends before channeling profits to Tice and an offshore trust registered in Jersey. Tice has defended the oversight, calling it a "technicality" and asserting that "overall HMRC received the correct amount of tax due."
Reform UK's home affairs spokesperson, Zia Yusuf, echoed this stance, telling Sky News the issue was a "non-story." He argued that any tax underpaid by the company would have been offset by income tax paid by Tice personally, suggesting HMRC ultimately collected the full amount.
"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 said. "So it does look like HMRC netted off in the same way."
However, political opponents have seized on the revelation. Labour has labeled it "a major scandal which goes to the heart of Richard Tice's integrity and credibility," with a party spokesperson demanding Tice urgently explain whether his business "followed the law and paid the full tax it owed." This follows a previous Labour request last month for HMRC to investigate Tice's tax affairs after reports suggested his company had avoided nearly £600,000 in corporation tax.
Liberal Democrats leader Sir Ed Davey went further, calling for Tice's dismissal. "Morally completely indefensible. Farage should sack Richard Tice immediately," he tweeted.
At a Westminster press conference, Tice defended his company's practices, stating Quidnet Reit Ltd was "a UK company paying UK tax in accordance with UK laws." He challenged journalists, asking, "How many friends of yours would voluntarily choose to pay more tax than they are legally obliged to do?"
"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," Tice added.
HMRC declined to comment on the specifics, with a spokesperson stating, "We neither confirm nor deny investigations and we cannot comment on identifiable individuals." The controversy highlights ongoing scrutiny of politicians' financial dealings as Reform UK faces increasing public and political examination.