Reform UK leader Nigel Farage is confronting escalating demands to dismiss his deputy leader Richard Tice following explosive allegations regarding Tice's tax affairs. The controversy centres on claims that Tice, who serves as the party's business spokesman and co-owns Reform with Farage, failed to pay tens of thousands of pounds in tax on dividends distributed to him and his offshore trust.
Allegations of Unpaid Tax and Legal Breaches
According to a report in The Sunday Times, Tice received "at least £91,000 in excess payments" due to this failure. The allegations suggest that from 2020 to 2022, his property company Quidnet REIT paid £600,000 in dividends to Tice and his trust, but did not pay the approximately £120,000 in tax legally required on those dividends.
Tax expert Dan Neidle stated unequivocally that "Mr Tice's company broke the law." He emphasised that "the law required that the REIT pay tax on its dividends immediately, rather than waiting up to 21 months until its shareholders file and pay tax. The tax is still due." Neidle added that there was "no ability to choose for different people to pay tax, months later than it should be paid. The law is the law. It's not optional."
Political Reactions and Condemnation
Labour Treasury minister Torsten Bell launched a scathing attack, declaring: "We already knew Richard Tice aggressively avoided tax. Now we're told his company just plain failed to pay tax that was legally due. For someone supposedly in public service he goes to extreme lengths to avoid paying his fair share towards public services."
The controversy has drawn parallels with the scandal that forced Angela Rayner to resign as deputy prime minister over unpaid stamp duty, though the amounts involved in Tice's case are substantially larger.
Defiance and Counter-Accusations
Richard Tice has vehemently rejected the allegations, labelling them as "a smear" campaign against him. In a pointed response to critics, Tice highlighted Liberal Democrat leader Sir Ed Davey's role in the Post Office scandal, noting that Davey had been the post office minister who allowed postmasters to be wrongly prosecuted.
Sir Ed Davey had earlier stated on social media that Tice's actions were "morally completely indefensible" and called for Farage to "sack Richard Tice immediately."
Party Leadership Stands Firm
Despite the mounting pressure, Reform UK's leadership has continued to support Tice. The party's home affairs spokesman Zia Yusuf defended Tice during Sunday broadcast interviews, claiming the tax avoidance allegations were "a non-story."
Yusuf argued: "Richard Tice has not committed tax evasion nor tax avoidance, that would be the first point I make. And the second point I would make is that what's also seems clear to me, and I'm obviously not a tax lawyer, but it is clear to me that any tax that would have not been paid or underpaid by the company paying the dividend in this case would have been overpaid by Richard himself in the form of income tax. So it does look like HMRC netted off to the same."
When questioned about another controversy involving a competition to pay people's energy bills currently under police review, Yusuf dismissed concerns, suggesting those making reports "should be embarrassed" and comparing it to previous unfounded complaints against the party.
The situation presents a significant challenge for Nigel Farage as he balances maintaining party unity with growing external pressure to address the serious allegations against his deputy leader. With tax experts confirming legal breaches and political opponents calling for decisive action, the controversy threatens to overshadow Reform UK's policy agenda and damage its credibility with voters.
