Today, the UK’s chief tax officer weighed into the controversy surrounding minister Nadhim Zahawi’s finances by stating that there are no penalties for harmless mistakes.
Jim Harra made the statement to MPs today, days after it was revealed that the Tory chairman paid £5 million to settle a tax bill when chancellor last year.
Today, Mr. Zahawi will sit across from Mr. Sunak at the Cabinet table, amid rumors that the Prime Minister is “livid” with him for giving Labour a political “gift.”
With Labour far ahead in the polls, he and other ministers will travel to the PM’s country estate, Chequers, for a Cabinet away day to deliberate election strategy.
Mr. Zahawi, the multimillionaire founder of YouGov, is facing calls for his resignation over a payment tied to the sale of shares in the polling firm.
Today, in response to inquiries from the Public Accounts Committee, Mr. Harra was cautious to clarify that he was not referring to any specific individual.
However, the HMRC chief executive stressed, ‘There are no consequences for innocent mistakes in your tax affairs.’ Therefore, if you exercise reasonable care but nevertheless make a mistake, you will be liable for the tax and interest if it is paid late, but not for a penalty.
However, if your error was the product of negligence, the law states that you may be subject to a punishment.
Jim Harra made the statement to MPs today, days after it was revealed that the Tory chairman paid £5 million to settle a tax bill when chancellor last year.
Mr. Zahawi is facing calls for his resignation after it was revealed he settled a tax issue with HM Revenue and Customs for £5 million when he was chancellor last year.
With Labour far ahead in the polls, he and other ministers will travel to the PM’s country estate, Chequers, for a Cabinet away day to deliberate election strategy.
A fresh poll released today by People Polling gives Labour a 29-point lead among voters, an increase of five points in one week.
Mr. Zahawi was missing from yesterday’s Prime Minister’s Questions, during which Mr. Sunak distanced himself from the matter in advance of a forthcoming standards investigation report.
He noted, to the amusement of the legislators, that “innocent” was not a legal term.
If you were negligent in your tax affairs and committed an error as a result, you may be subject to a penalty.
Mr. Zahawi was missing from yesterday’s Prime Minister’s Questions, during which Mr. Sunak distanced himself from the matter in advance of a forthcoming standards investigation report.
The Times reports that the Prime Minister is upset with the YouGov founder for causing an ethical dispute. A fresh poll released today by People Polling gives Labour a 29-point lead among voters, an increase of five points in one week.
Jim Harra, the chief executive of HMRC, told members of parliament today that officials would assist in every manner possible with the ethics investigation.
Today, ministers will be informed that the Conservatives still have a “narrow” route to election victory if they can deliver on the public’s demands and cease the corrosive infighting within the party.
This afternoon, Mr. Sunak will convene his Cabinet in Chequers for the ‘away day’ aimed to fulfill his New Year’s resolutions and chart the road for the upcoming election.
Downing Street stated that ministers would be requested to provide updates on the status of his five pledges, which include restoring economic competence, reducing NHS waiting lists, and preventing migrant crossings of the English Channel.
In addition, they will undertake lengthy discussions on the party’s plan to win the general election scheduled for the fall of next year.
Elections expert Isaac Levido will provide a comprehensive presentation on the health of the parties, during which he will warn the Conservatives that their route to victory is “narrow.”
Since last summer, opinion polls have placed Labour more than 20 points ahead, suggesting that Sir Keir Starmer is on track for Downing Street.
However, Mr. Levido, who played a significant part in Boris Johnson’s 2019 landslide victory, would inform ministers that the lead is “weaker than it appears.”
A Conservative source remarked, “He won’t sugarcoat it – the numbers are not good.” But he will assert that there is a narrow route to success.
The polls indicate that Starmer is still unpopular and that Labour’s support is not assured. People will vote Labour if the Conservatives fail to get their act together, but there is still a chance to salvage the situation.
Another source stated, “The polls are accurate; we are far behind in terms of voting intent. However, voters are not now considering an election, and the numbers are much closer on the crucial question of who would make the best prime minister.
Mr. Levido will warn ministers that the Conservatives must cease the internecine warfare that resulted in the ouster of two prime ministers last year if they are to regain public trust.
And he will argue that delivering on the five priorities is a crucial first step in convincing voters that the Conservatives have regained their competence.
Mr. Sunak’s promises include halving inflation this year, reviving economic development, and reining in the United Kingdom’s soaring debts.
The Chancellor Jeremy Hunt, the Health Secretary Steve Barclay, and the Home Secretary Suella Braverman will each give a presentation on the five aims’ progress. Work and Pensions Secretary Mel Stride is anticipated to highlight efforts to convince hundreds of thousands of people over the age of 50 to return to the workforce – a problem seen crucial to economic development hopes.
Mr. Zahawi will attend the gathering, but according to insiders, he will not give a presentation, despite being officially in charge of electoral planning.
A Tory insider stated that Sir Keir will be targeted due to his ‘major areas of vulnerability,’ including Labour’s ‘woman problem,’ which has paralyzed senior leaders in the party-splitting fight over trans rights.
In addition, they will emphasize the party’s reliance on funding for trade unions, which is at the core of the current wave of strikes, Sir Keir’s resistance to deporting Channel migrants to Rwanda, and Labour’s ‘lack of stomach’ for addressing immigration concerns.
Sir Keir conceded last night that Labour’s polling lead would not definitely translate into an election triumph.
In an interview with the Spectator, he stated, “Complacency worries me.” I believe and hope that we have ultimately put the Labour party in a position where country comes first and party second. This is the first time in a very long time that this has occurred. However, we have not yet won anything.
Mr. Harra stated that he was unable to comment on the tax affairs of an individual, but hinted that HMRC may potentially provide a more public statement on a minister’s tax affairs under specific conditions.
He told the MPs: ‘Taxpayers can permission for HMRC to share information about their tax matters with third parties, which is usual, for instance, if they have an agent. Even if they had given us permission to do so, it would not be typical for HMRC to remark publicly on a taxpayer’s tax circumstances.
Our responsibility not to divulge information publicly stands whether or not a taxpayer is comfortable with it.
Using MPs and constituents as an example, he stated, “Normally, if a taxpayer gives us permission to speak to someone about their tax affairs, we would do so.”
When asked if a minister or Mr. Zahawi granted permission to HMRC to discuss their tax affairs with the committee, he responded, ‘It would not be normal for me to account to this committee for a person’s tax affairs, but if there are general issues about how we manage tax and I have the ability to be transparent, that’s something I would obviously take advantage of.
If the independent adviser on ministerial interests requests our assistance with the investigation, we will do so in any way possible
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