Markus Andrews

Loopholes in the UK tax system can make it harder for authorities to build a full picture of an individual’s worldwide assets and income.These include so-called ‘ghost-dom’ and a broader use of non-domicile status.The latter, non-dom status, gained fresh attention when The Independent revealed last month that the chancellor’s wife, Akshata Murty, had used the entirely legitimate status to save millions of pounds on her tax bill. She said subsequently that she would stop using this status for her tax returns.Being a non-dom for remittance purposes allows individuals not to pay UK tax on their worldwide income – provided they keep it overseas. This means that if they file a UK tax return, and select an option to use non-dom status, they also avoid offering details of their worldwide income and assets to HMRC.Using non-dom status is optional, and has to be deliberately claimed as an exemption on foreign income over £2000. The UK government’s guidance suggests a person’s domicile is usually the country where their father considered his permanent home when they were born. This can change if the person moved abroad and does not intend to return.This option is available to those who have lived in the UK for a certain number of years; the annual fee is £30,000 for residents who have lived in the UK for at least seven out of the last nine tax years and £60,000 for 12 out of the last 14. If a person has been resident in the UK for 15 out of the past 20 years, they must they pay UK tax on their worldwide income.There’s another subset of non-dom status, which uses section 809E of the 2008 Finance Act. This is known by some figures in the finance industry and in law enforcement as ‘ghost dom’ status, as this allows individuals, even if they live in the UK 365 days a year, not to file a tax return to HMRC altogether.It can only be used if a person claims that they do not have any taxable UK income. While tax experts have said some very wealthy, but perfectly law-abiding individuals use it, there are also concerns over the secrecy it provides some figures.This is because being a ‘ghost dom’ allows individuals to avoid interaction with British tax authorities, when such paper trails are often a key starting point for investigators. The loophole therefore makes it harder to work out where a person gets their money from and can slow down the sanctions process, according to officials.Those same officials and tax advisors also claim ‘ghost doms’ have included super rich figures with criminal connections and individuals with links to the Russian regime and oligarchs. More

The Belfast Agreement, more commonly known as The Good Friday Agreement, was signed in Northern Ireland on 10 April 1998. It effectively brought an end to The Troubles, which had raged in the region for thirty years, and established a cross-community consensus for peace and the future direction of the region.As Brexit puts the Northern Ireland protocol under the spotlight and Sinn Fein celebrate victory in the polls, we look at the history of the hugely significant deal 24 years on. The TroublesFrom the late 1960s, Northern Ireland was plunged into a brutal conflict between republicans who wanted the province to become part of a united Ireland and unionists who wanted to remain within the United Kingdom. Republicans and the wider nationalist community are mostly Catholic, while unionists are mostly Protestant. More

Boris Johnson is continuing to resist pressure for a windfall tax on energy firms, amid predictions that millions of families could face a further hike of almost £1,000 in bills this autumn.ScottishPower boss Keith Anderson said average household bills were likely to leap from £1,971 to as much as £2,900 in October when regulator Ofgem next reviews the price cap.And he said that the government’s current offer of a £200 loan to help households tide over was “not going to be anywhere near enough” to cushion the blow, which follows an average increase of almost £700 in combined electricity and gas prices in April.Downing Street confirmed that the government is expecting further increases in the autumn, but refused to say whether it accepted Mr Anderson’s figures.“I think it’s fair to say that we do expect there to be further increases later in the year,” said Mr Johnson’s official spokesperson.“The chancellor has talked about that, and has made clear that we will look to do what we can to help with energy bills in the autumn when we know more about what prices will be.”“Given what’s going to happen in October, we think that urgent action is required to put in place a mechanism to support customers through this period,” he said.“You require a sum of about £1,000 to start bringing bills back closer not to where they used to be, but closer to where it’s realistic to expect people to be able to pay them.”He called for “targeted” support for the most vulnerable customers. This could be for customers with pre-payment meters, those on Universal Credit, or those eligible for the warm home discount.He said the Government’s plan to give each household £200 towards their energy bill – a sum that will need to be paid back – will be insufficient.“Our view is clearly now this £200 is not going to be anywhere near enough,” he said.“This will take time to implement, and it will take time to agree on the exact format of it … that all needs to be debated, signed, sealed, delivered, designed and agreed by July to allow it to be implemented by October.”He said there are several different ways for the £1,000 to be funded. It could for instance be added to all household energy bills over the next decade.Shadow energy secretary Ed Miliband said that Rishi Sunak’s £200 “rebate” on bills, coupled with a £150 cut to council tax for less well-off households, will be “wholly inadequate to meet the scale of needs” as soaring bills hit families’ budgets.He renewed Labour’s call for a further £600 in assistance, funded by a windfall tax on soaring North Sea incomes, which last week saw BP announce a doubling of its profits in the first three months of the year to £4.9bn.”As energy bills spiral for working people, this warning is yet another reminder that the government is failing to tackle the cost of living crisis,” said Mr Miliband.”Energy bills have already risen to their highest level in a generation. Yet instead of offering real support, this government’s ‘buy now, pay later’ loan scheme is wholly inadequate to meet the scale of need. “And they refuse to implement a windfall tax on the oil and gas producers making record profits, that could fund real support for families. Britain needs a government that is on your side.”But the prime minister’s official spokesperson said: “We want to encourage investment and not to deter it and obviously I wouldn’t speculate but obviously we don’t know what impact would be on raising a windfall tax and whether that additional charge will be passed on to bill-payers.”The spokesperson said that investment by energy companies in new greener sources of power was vital to rein in future bills.“We saw them announce billions of pounds to do things which will enable the lower emission oil and gas projects, offshore wind projects, electric vehicle charging infrastructure, carbon capture and storage,” said the PM’s spokesperson.“Those are vital to the long-term energy security of the UK and to moving away from some of the volatility that’s affecting people’s bills right now.” More

The Belfast Agreement, more commonly known as The Good Friday Agreement, was signed in Northern Ireland on 10 April 1998. It effectively brought an end to The Troubles, which had raged in the region for thirty years, and established a cross-community consensus for peace and the future direction of the region.As Brexit puts the Northern Ireland protocol under the spotlight and Sinn Fein celebrate victory in the polls, we look at the history of the hugely significant deal 24 years on. The TroublesFrom the late 1960s, Northern Ireland was plunged into a brutal conflict between republicans who wanted the province to become part of a united Ireland and unionists who wanted to remain within the United Kingdom. Republicans and the wider nationalist community are mostly Catholic, while unionists are mostly Protestant. More

Police investigating Covid law-breaking in government during the pandemic say a total of 126 fines have now been issued to 83 people in the Partygate scandal.The Metropolitan Police said it had concluded its Operation Hillman probe into rule breaches in Downing Street and Whitehall.The force has not said who has been given Fixed Penatly Notices (FPNs) but prime minster Boris Johnson has previously admitted he and his wife Carrie are among them, having received one fine each.Police said 53 fines were issued to 35 men and 73 fines were issued to 48 women. A total of 28 people were fined more than once, receiving between two and five FPNs.In total, 16 events are being considered by civil servant Sue Gray who is compiling a report into Partygate.Only 12 of the events were investigated by police under Operation Hillman. The Met did not say which of the gatherings resulted in fines, but did reveal that the offences related to eight dates.Operation Hillman comprised 12 full time dedicated police officers and cost £460,000. Between 27 March 2020 and 18 July 2021, the Met issued referred 16,796 fines.The Independent looks at all the claims of parties and investigations into gatherings across No 10, government departments and at Conservative Party HQ.15 May 2020 – No 10 garden gatheringA joint investigation by The Independent and The Guardian revealed that a wine and pizza gathering was held in the No 10 rose garden on 15 May 2020 – despite rules limiting people from different households to one-on-one meetings outdoors. An image later published showed wine and cheese being consumed by the prime minister, Ms Johnson, and advisers including Dominic Cummings. Former health secretary Matt Hancock was also photographed in the Downing Street garden, after having delivered the day’s covid press conference. Mr Johnson has previously insisted “those people were at work, talking about work”. At the time, Covid laws banned gatherings of more than two people unless they met specific exemptions, such as being “for work purposes”.No fines were issued for this event.20 May 2020 – ‘Bring your own booze’In a blog post, Mr Cummings dismissed the idea that the 15 May photograph depicted a party, insisting it was common practice for meetings to be held in the open air of the garden. However, he claimed that a “socially distanced drinks” event did take place on 20 May 2020. A leaked email sent from the PM’s private secretary showed that over 100 No 10 staff had been invited to the event and were told to “bring your own booze”. Mr Johnson subsequently apologised, confirming that he attended the event for around 25 minutes but assumed it was “a work event” – an excuse that drew laughs of incredulity in the Commons and mockery from Labour leader Sir Keir Starmer.Fines were issued for this event, which police found to be a breach of Regulation 6 of the Health Protection (Coronavirus, Restrictions) (England) Regulations 2020 (Restriction on leaving, or being outside of, the place where you were living without reasonable excuse.)Boris Johnson says he was ‘at work’ during No 10 garden gathering18 June 2020 – Cabinet Office leaving doMs Gray’s interim report said a gathering in the 70 Whitehall building was held to mark the departure of a No 10 private secretary, reportedly former home affairs policy adviser Hannah Young, who left Downing Street to take up the role of deputy consul general in New York.Fines were issued for this event, which police found to be a breach of Regulation 7 of the Health Protection (Coronavirus, Restrictions) (England) Regulations 2020 (Restriction on participating in an indoor gathering consisting of two or more people)19 June 2020 – Boris Johnson’s birthdayDowning Street staff held an afternoon birthday party for Mr Johnson at No 10. His wife, Carrie Johnson, led the surprise gathering where there was cake, a singing of happy birthday, and picnic food from M&S. A No 10 spokeswoman confirmed that a group of staff had “gathered briefly” in the Cabinet Room “to wish the prime minister a happy birthday”, adding: “He was there for less than 10 minutes.” Fines were issued for this event, which police found to be a breach of Regulation 7 of the Health Protection (Coronavirus, Restrictions) (England) Regulations 2020 (Restriction on participating in an indoor gathering consisting of two or more people)Mr Sunak is said to have received his fixed penalty notice (PFN) for attending this event.Boris Johnson was ‘ambushed with a cake’, claims loyal Tory MP13 November 2020 – Lee Cain leaving speech and Downing Street ‘flat party’ Another allegation made by Mr Cummings was of a “flat party” in Mr Johnson’s official residence on 13 November 2020 – the same day he left No 10. Mr Cummings claimed staff “could hear the music playing loudly”. Asked at PMQs if there had been a party, Mr Johnson said “no” but added: “I’m sure that whatever happened the guidance was followed at all times.” Earlier in the day, Mr Johnson is reported to have given a brief leaving speech for Lee Cain, his director of communications. New lockdown laws had once again banned gatherings and leaving home “without reasonable excuse” at the time. Indoor gatherings were allowed in some circumstances if “required precautions” were undertaken.Fines were issued for this date, although police did not specify for which event. Police said there had been a breach of Regulation 8 of the Health Protection (Coronavirus, Restrictions) (England) (No. 4) Regulations 2020 (Restriction on participating in an indoor gathering consisting of two or more people.)27 November 2020 – Cleo Watson’s leaving eventAnother leaving event was reported to have been held two weeks later — when the lockdown remained in place — for adviser Cleo Watson, with the PM personally delivering a speech while alcohol was consumed. Police did not investigate this event but it is one of the events being looked at by Sue Gray.10 December 2020 – Education department drinks eventAlso under scrutiny is a social event reportedly held at the London offices of the Department for Education on 10 December 2020, instigated by the then-education secretary Gavin Williamson to thank his staff. The department admitted a “gathering of colleagues” took place on 10 December, with “drink and snacks brought by those attending”, adding: “Looking back we accept it would have been better not have gathered in this way at that particular time”. The law had changed again, including different levels of restrictions for different areas according to Covid rates. London was in Tier 2, which banned indoor social gatherings unless specific exemptions applied.Police did not investigate this event and it will not form part of the Sue Gray’s inquiry.14 December 2020 – Shaun Bailey’s Tory HQ partyFour days later, with Londoners still subject to Tier 2 restrictions, a party took place at the Conservative Party headquarters in Westminster. A picture of the gathering was later published by the The Mirror showing a catered buffet, leading to the resignation of Shaun Bailey from an official role at the London Assembly as chair of the police and crime committee. Disciplinary action was was taken against four CCHQ staff seconded to his unsuccessful London mayoral campaign. Police did not investigate this event and it will not form part of Sue Gray’s inquiry.15 December 2020 – Christmas quizNo 10 staff were involved in a festive quiz, with invitations reportedly were sent out in advance. An image later published by the Sunday Mirror showed the PM flanked by colleagues, with one draped in tinsel and another wearing a Santa hat. After the photographic evidence emerged, Downing Street admitted the prime minister had “briefly” attended the quiz but insisted it was a virtual event and claimed he broke no rules. Tier 2 laws remained in force.No fines were issued for this event.16 December 2020 – Transport department drinks eventThe Mirror reported senior civil servants were “boozing and dancing” at yet another event, this one allegedly planned by staff from transport secretary Grant Shapps’ office. A departmental spokesman said: “Fewer than a dozen staff who were working in the office had a low-key, socially distanced gathering … where food and drink was consumed. We recognise this was inappropriate and apologise for the error of judgement.” At midnight, London had been moved into tougher Tier 3 restrictions and indoor gatherings remained banned.No fines were issued for this event.17 December 2020 – Two Cabinet Office drinks events and No 10 leaving do for Steve HighamA leaving party was held at the Cabinet Office for the outgoing head of the civil service Covid taskforce, while a separate gathering was held in the Cabinet Office to hold an online Christmas quiz for the Cabinet Secretary’s private office. Separately, a leaving do was held at No 10 for a departing Downing Street official, reportedly Captain Steve Higham, one of Mr Johnson’s private secretaries. The Mirror, which first reported the event, said Mr Johnson was only there “for a few minutes”.Police investigated the two Cabinet Office events. Fines were issued for this date. Police found one or both of the Cabinet Office events was in breach of Paragraph 1 of Schedule 3 to the Health Protection (Coronavirus, Restrictions) (All Tiers) (England) Regulations 2020 – (Restriction on participating in an indoor gathering in the Tier 3 area consisting of two or more people.)18 December 2020 – ‘Christmas party’ that kicked off scandalAllegations of a Christmas party held in No 10 were the focus of much anger. It happened while London remained in strict Tier 3 measures, and just a day before Mr Johnson imposed an effective lockdown in the capital and other swathes of the country. Mr Johnson was forced to address the issue in the Commons after the explosive leak of a video showing No 10 staff holding a mock press conference and making jokes about a Christmas party. Sobbing Allegra Stratton resigns over No 10 party videoIt led to the resignation of government aide Allegra Stratton and the PM announcing Ms Gray’s investigation, claiming he was “shocked” by the video. “I apologise unreservedly for the offence that it has caused up,” Mr Johnson told MPs.Police investigated the event.Fines were issued for the event, which police found to be in breach of Paragraph 1 of Schedule 3 to the Health Protection (Coronavirus, Restrictions) (All Tiers) (England) Regulations 2020 – (Restriction on participating in an indoor gathering in the Tier 3 area consisting of two or more people.)14 January 2021 – More No 10 leaving drinksA gathering was held in No 10 to mark the departure of two private secretaries. Reports have suggested the PM attended the leaving event, which was for a senior civil servant in the Department for Digital, Culture, Media and Sport, according to The Telegraph. The other official’s identity is so far unknown.Police investigated the event. Fines were issued for the event, which police found to be in breach of Paragraph 3 of Schedule 3A to the Health Protection (Coronavirus, Restrictions) (All Tiers) (England) Regulations 2020 (Restriction on participating in an indoor gathering in the Tier 4 area consisting of two or more people.)16 April 2021 – Leaving drinks on eve of Philip’s funeralTwo parties were held by Downing Street staff at No 10 on this date — the night before Prince Philip’s funeral. One was a leaving party for the director of communications James Slack, who now works as deputy editor-in-chief at The Sun newspaper, and the other was for Mr Johnson’s personal photographer. Boris Johnson was not at either party. Witnesses reportedly said “excessive alcohol” was drunk and attendees danced to music while at one point a staffer was allegedly sent to a local Co-op with a suitcase to buy bottles of wine.Police investigated these events.Fines were issued for this date, although police did not specify for which event. Police said there was a breach of Paragraph 2 of Schedule 2 to the Health Protection (Coronavirus, Restrictions) (Steps) (England) Regulations 2021 (Restriction on participating in an outdoor gathering in the Step 2 area consisting of more than six people.) More

Controversial plans to prevent teenagers going to university if they fail to achieve tougher minimum school grades could be dropped, a minister has suggested.The proposals – widely criticised for penalising disadvantaged students – are an attempt to “start a conversation”, Michelle Donelan said, adding: “We might not do it.”The Institute for Fiscal Studies has joined the outcry at the new barriers in the way of higher education, warning youngsters from minority ethnic backgrounds and on free school meals would suffer.The National Union of Students called the plans “classist, ableist and racist”, saying: “They cruelly target those from marginalised communities and seek to gatekeep education.”They would see state-backed tuition fee and maintenance loans denied to students who fail to achieve two Es at A-Level or a Level 4 pass in English and maths at GCSE.Ms Donelan, the universities minister, called the idea “one of the options on the table”, with a consultation underway by the Department for Education (DfE).“What we have said is that we want to start a conversation on this. We might not do it,” the minister told BBC Radio 4.The plans are part of a shake-up to slash £5bn from the taxpayer bill for higher education, by also forcing many more students to pay back their loans in full.Graduates will start repayments with lower earnings and pay off debts for 40 years, instead of 30 – while proposals to bring back maintenance grants and cut annual fees from £9,250 to £7,500 were rejected.Poorer students will lose out, while top-earning graduates pay less, as the proportion repaying their loans in full soars from around 25 per cent to 70 per cent.The University Alliance, representing professional and technical universities, said minimum grades would “crush aspiration and exacerbate disadvantage”, jeopardising graduate numbers in social work and computer science.“If implemented, the casualties will be the poorest and most disadvantaged in society,” said Vanessa Wilson, the UA’s chief executive.The MillionPlus group, which represents newer universities including Bath Spa and the University of Cumbria, criticised an attack on “inclusion, aspiration and the power of education”.“On a purely practical level, minimum requirements are likely to be unworkable, due to the number of exemptions that would need to be taken into account,” said Rachel Hewitt, its chief executive.The DfE’s own equality impact assessment found that restricting access to loans “would disproportionately affect students who are black and from ethnic minority groups”.Ms Donelan said: “We used to have minimum eligibility requirements in this country not that long ago – two Es.“That’s what we’re looking at again, as one of the options on the table, with a number of exemptions we’ve made that very clear for people like mature students, part time learners.”The minister added: “At the moment we know that a number of students feel pushed and pressured into university before they’re ready.” More

Nicola Sturgeon has accused the Conservatives of a “massive operation” to distract from the Partygate scandal by demanding police action over Keir Starmer’s beer-and-curry gathering.Durham Police is looking again at the meal organised for the Labour leader after campaigning in April last year, after cabinet ministers piled pressure on the force for a rethink.Sir Keir has pulled out of a speaking event to avoid questions, as some in Labour urge him to pledge to quit if he is fined – to pile pressure on Boris Johnson over his own penalty notice for breaching Covid rules.The Scottish First Minister said it “would be wrong” to comment on a police investigation, saying: “Let’s wait and see what comes of this.”But she said: “What I do think is pretty obvious is that there is a massive operation underway on the part of the Conservatives to divert attention from Boris Johnson.“And not just Boris Johnson’s single breaking of the rules, but what appears to have been a serial breaching of the rules and, of course, Boris Johnson’s inability to be straight with the House of Commons.”Mr Johnson has been fined for attending a lockdown birthday party in Downing Street and will be investigated by a Commons committee for allegedly lying to parliament – a resignation offence.Both Jacob Rees-Mogg and Nadine Dorries had called publicly for Durham Police to investigate the so-called “Beergate” affair, despite normal practice to respect police independence.Labour has declined to say why Sir Keir cancelled the appearance at the Institute for Government on “meeting the challenges the country faces” ahead of Tuesday’s Queen’s Speech.But the party has insisted he is not ducking scrutiny after he said, on Saturday: “I was working in the office, we stopped for something to eat. There was no party, no breach of rules, I am confident of that.” Meanwhile, a poll has found that Conservative voters, by a narrow majority, do not want Sir Keir to resign even if he is fined by Durham Police.Some 40 per cent of the party’s supporters said he should quit in those circumstances – while 43 per cent told YouGov that he should remain in his post.Overall, 46 per cent of Britons said the Labour leader should resign if he is fined, lower than the 57 per cent who want the prime minister to resign, having been fined already. More

Twenty-eight councils in the most deprived areas of England have had their bids for a £1.7 billion levelling up fund rejected, according to an investigation.Described by Boris Johnson as the “defining mission” of his government, levelling up aims to reduce geographic economic, social and health inequalities.Last year ministers allocated the first round of levelling up funding — £1.7 billion — from central government, but questions have been raised over the process.According to BBC Panorama, which sent freedom of informations requests to councils in the 100 most deprived areas of the country, 28 had all their bids rejected.They included Blackpool and Knowsley, where the local Labour council leader criticised the government’s decision to reject three separate funding bids in February.The BBC added that 38 councils won all, or some, of the money requested while 34 councils did not submit a bid in this round.Labour’s Lisa Nandy, the shadow levelling up secretary, said: “We need a government with the same level of ambition for this county as the people in it.”“Forcing communities to compete for scraps from Whitehall is no substitute for investment to bring good jobs back to communities that have seen them bleed away for decades, and handing real power to communities to make the change for ourselves,” she added.Earlier this year, the government published a levelling up white paper — setting out 12 “missions” with 10 year timeframes for the flagship policy.They include boosting living standards, improving literacy and numeracy, regeneration, devolving further powers , reducing health disparities, and improving transport connectivity outside the capital.But with concerns over the cost-of-living crisis and rocketing energy bills, Michael Gove, the levelling up secretary also told the BBC the government’s plans were more difficult and more important as a result of rising prices.Mr Gove said: “At a time when inflation is rising that means every pound of government spending is worth a little bit less in a year’s time than it was last year. It is a tough climate — it is tough for everyone.”“Unless we stick to those missions [in levelling up white paper], then the cost-of-living issues that we face at the moment will deepen inequality,” he added. “It is both much more important and also that little bit more difficult”.The Independent has contacted the Department for Levelling Up, Housing and Communities for comment. More