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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think it sets a really bad example for the country when the PMs family have tax dodged millions

458 replies

Chloefairydust · 25/10/2022 22:05

Just that really…

Im really surprised Sunak actually made it to be prime minister considering the recent stories that have been in the news regarding his family avoiding millions of ££ in tax . I actually thought Boris would have been more likely to have been PM. (Not that he’s any better🤔)

OP posts:
OperationRinka · 27/10/2022 08:21

BabyGrooverBug · 27/10/2022 06:36

She lives in a country that doesn't allow dual nationality, so to pay UK personal tax she'd have to become British.

So this is really about "can a UK Prime minister be married to a foreign person". Staggering that in this day and age that would even be controversial.

That's totally untrue, although Murty's initial PR response did suggest as much, which put me off her immediately tbh.

Non-dom status has nothing to do with nationality. Enormous numbers of non-UK nationals live here and have normal UK tax status.

RitaConnors · 27/10/2022 08:22

£30k is not very much when you’re the 222nd richest person in the UK!

A) that's not all the tax she was paying.
B) you said she wasn't making any contribution towards roads.

MsMoody · 27/10/2022 08:38

Starting to think Rishi is paying for an army of social media bots from his vast wealth!

Skyellaskerry · 27/10/2022 09:03

I don’t care how much wealth a person has. I do care about fairness, and paying what you should pay for the benefit of our overall society. The majority of people are not tax experts, and it is lazy to throw this around. Non tax experts are, however, more than capable of understanding the broad facts and what they feel about them.

It is accepted that non dom and other tax breaks are legal, and, human selfish nature being such, most people will try to benefit from these. It is the availability and sanctioning (eg in the case of self sacrifice) of ‘tax efficiency’ schemes that need to change, or go.

The accusation that if you have an ISA makes you just the same as a multi millionaire with accountants galore to do his or her client’s tax planning, ensuring of course that they meet current rules, is also a poor argument. When ISAs were introduced, the tax free element was promoted. It was open. It was deliberate. Open to all who could save. They do not require tax knowledge to work through complex rules and regulations.

A different example mentioned -Salary sacrifice. I am curious about where, when, and how these are openly PROMOTED (outside of individual employers’ benefits offered to employees). If I understand correctly, these have to be applied for and sanctioned. As I wrote elsewhere, I would love to know how much tax income is lost from such schemes. Yes, thousands of people on ‘normal’ wages have these, and would lose income if they went, but how about better wages in the first place, or wanting this money to pay for, eg, health care and social care for all.

In summary it is the availability of tax ‘efficiency’ schemes that is the problem. IMHO.

minou123 · 27/10/2022 09:12

MsMoody · 27/10/2022 08:38

Starting to think Rishi is paying for an army of social media bots from his vast wealth!

We are trying, and clearly failing, to explain Tax Laws, and that Rishi Sunak"s wife did not tax dodge, tax avoid, or not pay taxes in the UK.

When it comes to Tax, someone's political opinions and the Political party they belong to means nothing to me.
Tax is based on fact not whether l like someone or not.

EsmaCannonball · 27/10/2022 09:19

Non-dom status has nothing to do with citizenship. After living here for more than two years she had to actively apply for it and state that the UK was not to be her permanent home. When caught out she told the media that she planned to return to India. She also failed to answer questions on paying tax in India. (If she was she would have acknowledged it.)

It's not a good look for a Chancellor or PM to think that taxes are for the little people. He's certainly not the only politician to offshore wealth in tax havens but the greed involved is certainly egregious. When he's raising your PAYE taxes or making cuts to services as there's 'a need to tighten belts,' it has to be remembered that he was opting out of the system because he needs hundreds of millions in the bank.

clarepetal · 27/10/2022 09:23

I don't know why people are cross with the op.
I am also livid at this, yes what they did was legal, but totally unethical. Yes, she changed it and opted to pay the tax, but only after this was bought to light and made him and his wife look bad. They are worth £730 million, they can afford to pay tax rather than pay to opt out. They are richer than our own king, Rishis father in law has been described as 'Indias Bill Gates'.
I don't think Rishi is really going to have an understanding of how it feels to be poor, do you?

MariEllie · 27/10/2022 09:31

minou123 · 27/10/2022 09:12

We are trying, and clearly failing, to explain Tax Laws, and that Rishi Sunak"s wife did not tax dodge, tax avoid, or not pay taxes in the UK.

When it comes to Tax, someone's political opinions and the Political party they belong to means nothing to me.
Tax is based on fact not whether l like someone or not.

Can I again say that those carping about Rishi and his wife had better not be using legal tax avoidance schemes themselves when they fill in their tax form. Else it’s hypocrisy!

BabyGrooverBug · 27/10/2022 09:32

OperationRinka · 27/10/2022 08:21

That's totally untrue, although Murty's initial PR response did suggest as much, which put me off her immediately tbh.

Non-dom status has nothing to do with nationality. Enormous numbers of non-UK nationals live here and have normal UK tax status.

Can you give me a single example of a foreign national and resident who pays UK tax on money they earn abroad? Seems a bit unlikely to me.

pigsDOfly · 27/10/2022 09:32

Rishis father in law has been described as 'Indias Bill Gates'.

And do you think Bill Gates pays any more than the absolute minimum amount of tax that he is obliged to pay?

Of course he doesn't. His very clever accountants will make absolutely sure of that.

BabyGrooverBug · 27/10/2022 09:34

EsmaCannonball · 27/10/2022 09:19

Non-dom status has nothing to do with citizenship. After living here for more than two years she had to actively apply for it and state that the UK was not to be her permanent home. When caught out she told the media that she planned to return to India. She also failed to answer questions on paying tax in India. (If she was she would have acknowledged it.)

It's not a good look for a Chancellor or PM to think that taxes are for the little people. He's certainly not the only politician to offshore wealth in tax havens but the greed involved is certainly egregious. When he's raising your PAYE taxes or making cuts to services as there's 'a need to tighten belts,' it has to be remembered that he was opting out of the system because he needs hundreds of millions in the bank.

It's the Chancellor or PM's wife not him. Should she do what her man tells her to do? She's an adult she can make her own choices.

walkinginsunshinekat · 27/10/2022 09:42

Can I again say that those carping about Rishi and his wife had better not be using legal tax avoidance schemes themselves when they fill in their tax form. Else it’s hypocrisy!

Not really.
He was/is the Chancellor/PM and will have the ultimate say on whether nom dom status is removed or not.

There is a slight conflict of interest.

toomuchlaundry · 27/10/2022 09:47

But @walkinginsunshinekat you could say that about any tax paying Chancellor. Any change in tax rate could be seen as a conflict of interest

BabyGrooverBug · 27/10/2022 09:57

walkinginsunshinekat · 27/10/2022 09:42

Can I again say that those carping about Rishi and his wife had better not be using legal tax avoidance schemes themselves when they fill in their tax form. Else it’s hypocrisy!

Not really.
He was/is the Chancellor/PM and will have the ultimate say on whether nom dom status is removed or not.

There is a slight conflict of interest.

Making Foreign people pay UK tax on foreign income is more a matter for the Ministry of Defence when you think about how how it would need to be enforced. 😁

OperationRinka · 27/10/2022 10:02

BabyGrooverBug · 27/10/2022 09:34

It's the Chancellor or PM's wife not him. Should she do what her man tells her to do? She's an adult she can make her own choices.

I can't believe people are still trotting this out. You've clearly not had to sit through as many Conflict of Interest training courses as I have.

Kazzyhoward · 27/10/2022 10:06

Fushiadreams · 26/10/2022 12:43

This is something that’s hugely emotive and contentious and it’s part in due to the media and part due to the lack of understanding of average folks like us.

they didn’t do anything morally or legally wrong. They optimised their tax position. They dodged nothing and words like dodged, morally wrong etc is what’s emotive. Because this is about overseas earnings not uk earnings.

most large companies and wealthy individuals will optimise their tax positions. They don’t sit and do it themselves, they don’t even really hands on over see it, the accountants and tax advisors do it. The individual or company then pays .

what’s now happened is Rishi wife is subject to double taxation. She’s paying tax on her earnings in non uk countries in that country and she’s now also paying it again in the uk. No one does double tax if they can avoid it. Folks have to remember it’s tax on her overseas earnings that’s in question , not uk tax. She was paying that.

so because of the hounding she’s being doubly taxed on over seas earnings. Once in the country she earns it and once here as well.

She's not paying it twice. That's why there are double tax treaties between most countries. She will pay some in India and some in the UK, that's not twice. If India tax rate is 20%, she'll pay 20% of her income. If the UK tax rate is 40%, she pays 20% to the UK (I.e. 40% less what she'd already paid in India). So not double tax at all!

MariEllie · 27/10/2022 10:07

walkinginsunshinekat · 27/10/2022 09:42

Can I again say that those carping about Rishi and his wife had better not be using legal tax avoidance schemes themselves when they fill in their tax form. Else it’s hypocrisy!

Not really.
He was/is the Chancellor/PM and will have the ultimate say on whether nom dom status is removed or not.

There is a slight conflict of interest.

Not at all if you believe that a woman has equal rights.

pigsDOfly · 27/10/2022 10:08

I don't think Rishi is really going to have an understanding of how it feels to be poor, do you?

If having lived in poverty, so that you can understand how it feels, was the criterion that qualified someone to be PM or Chancellor we'd never find anyone to fill the position.

I have no idea how it feels to be poor and I suspect the vast majority of the people on this thread don't know what it's like to live in poverty either.

I am far from rich, by any meaning of the word but I've always had money to spare and always lived comfortably. Never had to think about buying what I want. You don't have to be ridiculously rich to not understand what poverty feels like.

The only people who have an understanding of how it feels to be poor are people who are poor.

We can empathise but unless you live that life you cannot experience it.

What we need right now in a leader is someone who will understand that there are poor people in the country that have particular needs and will do all they can to help them get out of their poverty.

Whether or not Rishi Sunak is the person to do that remains to be seen. Given that he's a Conservative he probably isn't, but I don't think his wife's wealth is relevant to his ability to do his job well or not.

Kazzyhoward · 27/10/2022 10:08

BabyGrooverBug · 27/10/2022 09:32

Can you give me a single example of a foreign national and resident who pays UK tax on money they earn abroad? Seems a bit unlikely to me.

It's normal to pay tax on your worldwide income in the country in which you are resident.

NiceTwin · 27/10/2022 10:14

They do what every business owner does.
If there is a way to avoid tax, they will.
Doesn't make it illegal.

Sunflowerkeep · 27/10/2022 10:15

So many compliant responses. No wonder these corrupt clowns laugh at the plebs.

pigsDOfly · 27/10/2022 10:16

NiceTwin · 27/10/2022 10:14

They do what every business owner does.
If there is a way to avoid tax, they will.
Doesn't make it illegal.

Exactly.

walkinginsunshinekat · 27/10/2022 10:36

MariEllie · 27/10/2022 10:07

Not at all if you believe that a woman has equal rights.

Her income is their family income, its nothing to do with equal rights or tax evasion (on this we agree)

He can dock millions from their family wealth by removing Nom Dom status in the Autumn statement OR keep that money for themselves.

As far as i can see, thats a clear conflict of interest.

Take his wife out of it and say this was about his brother or fathers tax status.

BabyGrooverBug · 27/10/2022 10:37

Kazzyhoward · 27/10/2022 10:08

It's normal to pay tax on your worldwide income in the country in which you are resident.

She's not resident here.

minou123 · 27/10/2022 12:03

Kazzyhoward · 27/10/2022 10:06

She's not paying it twice. That's why there are double tax treaties between most countries. She will pay some in India and some in the UK, that's not twice. If India tax rate is 20%, she'll pay 20% of her income. If the UK tax rate is 40%, she pays 20% to the UK (I.e. 40% less what she'd already paid in India). So not double tax at all!

Nope! That's not how it works.