Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

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:
WhaaWhaa · 26/10/2022 08:03

Was (not anymore of course) paying £30,000 a year to not pay tax on her full earnings.

Her earnings from another country.

I'm sure most of us could 'afford' to pay more tax. But we choose to spend our excess money on other things like meals out, new sofas etc.

Most people don't say 'well, I only need £349 pounds a week to live on so I'll give £618 to the government' Most people keep that money and spend it on their lifestyles.

Dogtooth · 26/10/2022 08:07

I don't think it's specifically about them, more about the UK claiming to have moral authority when we launder money for all the criminals of the world.

LCopp89 · 26/10/2022 08:09

WhaaWhaa · 26/10/2022 08:03

Was (not anymore of course) paying £30,000 a year to not pay tax on her full earnings.

Her earnings from another country.

I'm sure most of us could 'afford' to pay more tax. But we choose to spend our excess money on other things like meals out, new sofas etc.

Most people don't say 'well, I only need £349 pounds a week to live on so I'll give £618 to the government' Most people keep that money and spend it on their lifestyles.

Yes but you're talking of a couple of hundreds of pounds - she literally has millions and millions that she will never even touch.

And she lives here, not India! Yes she pays for private schools and no doubt doesn't use the NHS, but does she not use our roads, our water/sewage systems, parks, etc? She should contribute.

MariEllie · 26/10/2022 08:13

LCopp89 · 26/10/2022 08:09

Yes but you're talking of a couple of hundreds of pounds - she literally has millions and millions that she will never even touch.

And she lives here, not India! Yes she pays for private schools and no doubt doesn't use the NHS, but does she not use our roads, our water/sewage systems, parks, etc? She should contribute.

jus5 one point you are missing - she does contribute. She does pay tax. It’s always amuses me when people moan on about other people who are successful. We have an immigrant family who have been successful and people moan. You would feel better if they were abject failures and running the country?

minou123 · 26/10/2022 08:16

OperationRinka · 26/10/2022 07:23

She didn't reside elsewhere though. She lived in the UK full time, owned houses here and was educating her children here while claiming that she was only here temporarily and intending to go "home" to live eventually, either with or without her husband. If she was lying about that then that's tax avoidance, bordering on evasion.

Im generously inclined to them at the moment because they're not the sodding Johnson's, and prepared to believe that like many couples with ties to two countries they originally picked country A, but when the he saw the opportunity of a huge promotion in country B they changed their plans. Happens all the time on a smaller scale.

Your confusing Ordinarily Resident for Tax purposes and Domicile for Tax purposes.

These 2 separate issues.

BernadetteRostankowskiWolowitz · 26/10/2022 08:16

but does she not use our roads, our water/sewage systems, parks, etc? She should contribute

This is covered in her cae tax, water bills, and council tax she pays. Just like everybody else in the UK.

WhaaWhaa · 26/10/2022 08:16

*Yes but you're talking of a couple of hundreds of pounds - she literally has millions and millions that she will never even touch.

And she lives here, not India! Yes she pays for private schools and no doubt doesn't use the NHS, but does she not use our roads, our water/sewage systems, parks, etc? She should contribute.*

I know but my point is it's all relative.

You can afford a holiday to centre parks. But you could go to Butlins or have no holiday at all and pay more tax voluntarily.

She has more 'spare' money than you. But you still have money you don't need so why is her 'spare' money up for grabs but yours isn't? Your couple hundred pounds will do something good if you hand it over.

You said yourself she pays £30000 a year for her non dom status.

Butitsnotfunnyisititsserious · 26/10/2022 08:22

*Yes but you're talking of a couple of hundreds of pounds - she literally has millions and millions that she will never even touch.

And she lives here, not India! Yes she pays for private schools and no doubt doesn't use the NHS, but does she not use our roads, our water/sewage systems, parks, etc? She should contribute.*

She does pay tax so she does contribute. And a hell of a lot more than you I'd bet. She's done nothing wrong by paying the amount she does. If you feel so strongly, up the amount you're taxed.

LCopp89 · 26/10/2022 08:26

Clearly I'm not going to win with all the non-dom fans on here. And despite knowing nothing about me, you're all screaming I should pay more tax.

But at least The Sunaks seem to agree with me as she has relinquished her status to pay full tax. The optics, in light of the NI increase, were terrible. So they're not completely daft.

minou123 · 26/10/2022 08:27

Worriedddd · 26/10/2022 03:26

I don't know any higher earners not on PAYE who don't use some kind of tax loopholes. They are everywhere one of the biggest ones is set up a ltd company set up a relative who has no taxable earnings as a director so they will only pay 20 percent tax on the dividends.

Again, being a shareholder and director of your own Limited Company and paying yourself in Dividends, is not a legal loophole.

This is a perfectly legitimate way to organise your Tax.

Millions of people are directors of Limited companies. In fact there are lots of posters on MN who are directors of thier Limited companies.
You are implying what they are doing is a loophole and therefore Tax Avoidance is really strange.

Whizzi24 · 26/10/2022 08:28

It may not be illegal but it presents a certain view of his values that he will not be able to overcome. As the cost of living crisis bites, he will seem even further removed from the ordinary people.

WhaaWhaa · 26/10/2022 08:30

I'm not screaming you should pay more tax. I'm suggesting you could as you are suggesting she could.

YellowDots · 26/10/2022 08:32

LCopp89 · 26/10/2022 08:26

Clearly I'm not going to win with all the non-dom fans on here. And despite knowing nothing about me, you're all screaming I should pay more tax.

But at least The Sunaks seem to agree with me as she has relinquished her status to pay full tax. The optics, in light of the NI increase, were terrible. So they're not completely daft.

Funny how you weren't praising her for rectifying the situation and paying far more than she has to until it suited your argument.

LCopp89 · 26/10/2022 08:39

YellowDots · 26/10/2022 08:32

Funny how you weren't praising her for rectifying the situation and paying far more than she has to until it suited your argument.

The OP asked if the PM's family were setting a bad example in dodging tax by using the non-dom status. I agreed. So did Akshata Murthy, which is why she opted out of it. Well done her. The end.

Getoff · 26/10/2022 08:40

EndlessMagpies · 26/10/2022 00:31

What are you saying it was that she did then? Sorry, I am not familiar with this particular issue.

The terminology I use is from the language used publicly by a civil servant towards the end of the last Labour government. (I was somewhat outraged at the time because they spoke of "tax avoidance" being wrong, and I thought a civil servant had no right to make a politically contentious judgement about a legal activity.) However, they did go on to make a distinction I had never heard before, between "tax avoidance" and (if I remember rightly) "acceptable tax mitigation". "Tax avoidance" was where you use the law in ways parliament did not intend in order to legally pay less tax. "Acceptable tax mitigation" is where you pay less tax by using schemes that parliament specifically intended to be used for this purpose. Such as making pension contributions, or (as Sunak's wife did) claiming non-dom status.

KonTikki · 26/10/2022 08:40

The old test,
Is it a good look. No it isn't. Therefore
the criticism of her non - Dom status is
perfectly understandable.

Also, I believe, to apply for non-Dom status you have to declare a plan to return to your country of tax status, in
her case India, after the maximum 10
years is up.
She is married to a British citizen and I
doubt any such declaration on her part,
hence I feel that her claim to non-Dom
status to be disingenuous at best.

Oblomov22 · 26/10/2022 08:47

I don't know enough about her particular case. But, Actually I think the ' non dom status' rule is questionable. In certain cases. Or any rule. If many people are using any tax rule to their Advantedge / legally 'circumnavigating it', then it needs to be reviewed. Regularly. That should be standard. Cases should be reviewed, on a case by case basis.

Hoppinggreen · 26/10/2022 08:48

Very very few people pay more tax than they need to.
I pay all taxes but only what I legally have to
I suspect if someone told OP they could perfectly legally pay less tax they would

Glittertwins · 26/10/2022 08:48

It's not illegal, she pays the tax on what she has to pay on. My pension contributions are salary sacrifice as will the majority of peoples be on here - are you saying this is tax avoidance? I will pay the correct amount but I'm not paying more!
British expats elsewhere do the same with the non dom thing too.

FloydPepper · 26/10/2022 08:49

amicissimma · 25/10/2022 22:10

There is no suggestion that they have done other than comply with the relevant tax regulations.

But if you feel strongly that people should pay more tax than they are legally required to, HMRC offers the facility to do so. You could take advantage of that.

OP means other people should pay more tax. Not herself

Oblomov22 · 26/10/2022 08:52

It's a loophole. Any loophole should be investigated. And adjusted if at all possible.

No one is accusing her of doing anything illegal. that is not what we are saying. read the thread properly.

He had a conflict of interest by being involved in this and that's wrong aswell. And any loophole should be looked into. Not just this one, not just her case. All loopholes.

Oblomov22 · 26/10/2022 08:54

When does her non dom expire. Return to India after 10'years. When is that planned for then? GrinWink

I'm teasing btw. But it's actually quite a serious issue.

BananaCocktails · 26/10/2022 08:55

cant stand him
he was Fined along with Johnson so in my view they are both the same
He has no mandate unfortunately the majority of people in this country are very white wing so I don’t see him winning general election based on his colour alone and that makes me really sad

Hellocatshome · 26/10/2022 08:56

Oblomov22 · 26/10/2022 08:52

It's a loophole. Any loophole should be investigated. And adjusted if at all possible.

No one is accusing her of doing anything illegal. that is not what we are saying. read the thread properly.

He had a conflict of interest by being involved in this and that's wrong aswell. And any loophole should be looked into. Not just this one, not just her case. All loopholes.

It is not a loophole.

AloysiusBear · 26/10/2022 08:56

The media has a tenuous understanding of international tax, at best.

Not structuring your lives to choose to pay the most tax possible, does not constitute evasion.

Swipe left for the next trending thread