Latest news with #Neidle
The National
05-08-2025
- Business
- The National
Dundee Utd tax accusations explained: Claims suggest £1m HMRC loss
In 2021 Robbie Patterson, owner of James Mackie Wholesale Ltd, was introduced to ZLX – a firm billing themselves as research and development tax experts. R&D tax relief was created in 2000. The aim was to fund and facilitate advances in science and technology such as a new drug or a form of artificial intelligence. ZLX, a firm established by former Hamilton Academical director Stephen McCallion, advised the wholesaler that installing a cold room could attract £30,000 in R&D tax relief. Robbie Patterson's accountant took a different view. And when James Mackie Wholesalers changed their minds over making an R&D relief claim ZLX pursued legal action in pursuit of the £8000 fee they believed they would have received if the the transaction had gone ahead. In Glasgow Sheriff Court, Sheriff Stuart Reid was critical of ZLX and rejected the claim. The subsequent publicity concerning a tax row over a fridge attracted the the interest of Dan Neidle, a former lawyer with one of the world's largest law firms. Niedle advised corporates, governments, regulators and central banks now runs Tax Policy Associates, a not-for-profit company found to improve tax and legal policy and public understanding of the complex issues involved. As he tells Herald Sport now: 'Not only did ZLX think that they could make a claim for a fridge but then they got the poor guy, the greengrocer, in to court to try and force him to do it. And they were humiliated.' The case prompted Neidle – a thorn in the side of former chancellor Nadhim Zahawi and Baroness Michelle Mone - to pay closer attention to some of the other R&D tax relief claims submitted by ZLX and he found that Dundee United were one of a number of British football clubs to have benefitted from the scheme. Hibernian, Chelsea and Nottingham Forest were others and it's now believed that 33 clubs in the UK are under investigation by HMRC. United face a £600,000 bill after the club was order to repay a portion of its successful £1.28m claim for research and development tax relief. The tax relief claim covered 24 per cent of staff and player wages from July 1 2021, to June 30 2022. The Tannadice club also claimed for 80% of the club nutritionist's salary, 90% of the player analyst's salary and 21 % of the Tannadice heating and lighting bill. 'R&D relief is designed for people who are being completely innovative and in sport the first people who did data analytics in football could have claimed R&D tax credits for that,' explains Neidle. 'That's a legitimate innovation. 'It's possible that clubs might be doing innovative scientific work, you don't want to say it never happens. 'But not in this Dundee United case. Not based on the description given. 'And you certainly can't claim in court for staff wages as if your players are out there doing scientific research. 'Some people have said that maybe Dundee United didn't know what they were doing, that maybe they were just misled by ZLX. Whatever the reason it's difficult to see how they could have thought that this was legitimate.' Dundee United's tax relief claim centred around The United Lab. Launched in April 2020 the project was set up by former Sporting Director Tony Ashgar, recruitment coordinator Sean McGee, performance consultant Ryland Morgans and head of football research Dan Parnell to broker 'new channels for ideas and innovation.' All four men have now left the club with a Dundee United statement to the Courier confirming that the lab had ceased to exist in 2023. A spokesperson said: 'Dundee United Football Club can confirm we remain in constructive dialogue with HMRC regarding a Research and Development (R&D) tax claim submitted in 2021. 'As this is an ongoing process, we are unable to comment further on the details of the matter at this time. However, the club is fully engaged in the discussions and remains confident in a satisfactory outcome of the process for both parties. 'The R&D initiative known as 'The Dundee United Lab' ceased operations in March 2023 and no longer exists in any form, with all personnel previously involved in the project no longer employed or affiliated with the club in any capacity.' The plot thickened further when United's former finance director denied signing the document made public by Neidle last week. Employed at Tannadice between December 2018 and April 2023 Derek Bond – now a partner with Edinburgh firm Bond Accountants - is seeking legal advice after claiming the signature on the document was not his. The co-signatory on the document was ZLX Business Solutions consultant David Purvis. 'The document I've seen that purports to have my signature on it, isn't my signature,' he told The Courier. 'You can see on the document that someone has just typed 'Derek Bond'. Read more from Stephen McGowan: 'That's not my signature on that document. 'I've spoken with a solicitor about that document. I've not signed that document.' Distancing himself from the HMRC investigation he added: 'It's galling, I don't want to be attached. 'There's a document with my name on it. I'm not saying it's forged. But somebody's typed my name and made it look like my signature but it is definitely not my signature.' While ZLX has yet to comment, Dundee United has assured fans the 'historical matter has no impact on the club's current or future operations'. 'HMRC won't say anything on the record,' adds Neidle. 'But I think they woke up rather late to the ways in which this R&D scheme was being abused. But it is an abuse. 'HMRC are pretty sure they will be able to get the cash back on this one. And it wouldn't surprise me if they try to charge penalties as well. Whether Dundee United can pay those as well is an interesting question. 'This is money which is being taken from the pockets of taxpayers at a time when we are all paying more tax because of the lack of tax revenue going into the government this is making it worse for everybody else. 'So, yes, it's an example of football taking money from the rest of us and it's not on. 'There is also a question, I think, for the Scottish League on the grounds of financial fairness. Generating free money by making fake tax claims doesn't seem very fair. 'It may need to go a little further but, really, the football rules should say that clubs are not allowed to do anything improper when it comes to tax.' While SPFL rules on HMRC obligations allow for punishment of tax arrears any disputed claim against a member club by the tax authorities can't be actioned 'until such time as a final determination is made on HMRC's claim.' In 2024 Hibernian also banked £1.2million in tax relief earmarked for research and development and Niedle believes the issue extends well beyond the boundaries of the SPFL Premiership. 'Across the UK we think 33 clubs are being investigated by HMRC across the UK over sums totally £13million. 'It's possible that some of them are not as crap as Dundee United's claim. It's equally possible that some of them are worse.' Earlier this year Neidle was invited to speak on a radio programme about the impact of Employee Benefits Trusts on football clubs in Britain. The financial impact on Rangers on the scheme proved catastrophic in 2012, posing an obvious question. When will football clubs actually learn their lesson when it comes to iffy tax schemes? 'You will know the answer to that better than me. 'The problem is that when you put that money into the pockets of well paid footballers public sympathy is likely to be thin on the ground. 'But I suspect that people who are desperate for money are not as critical as they should be when they are faced with free bags of cash…'
The Herald Scotland
05-08-2025
- Business
- The Herald Scotland
Dundee Utd tax accusations explained: HMRC allegedly scammed out £1m
R&D tax relief was created in 2000. The aim was to fund and facilitate advances in science and technology such as a new drug or a form of artificial intelligence. ZLX, a firm established by former Hamilton Academical director Stephen McCallion, advised the wholesaler that installing a cold room could attract £30,000 in R&D tax relief. Robbie Patterson's accountant took a different view. And when James Mackie Wholesalers changed their minds over making an R&D relief claim ZLX pursued legal action in pursuit of the £8000 fee they believed they would have received if the the transaction had gone ahead. In Glasgow Sheriff Court, Sheriff Stuart Reid was critical of ZLX and rejected the claim. The subsequent publicity concerning a tax row over a fridge attracted the the interest of Dan Neidle, a former lawyer with one of the world's largest law firms. Niedle advised corporates, governments, regulators and central banks now runs Tax Policy Associates, a not-for-profit company found to improve tax and legal policy and public understanding of the complex issues involved. As he tells Herald Sport now: 'Not only did ZLX think that they could make a claim for a fridge but then they got the poor guy, the greengrocer, in to court to try and force him to do it. And they were humiliated.' The case prompted Neidle – a thorn in the side of former chancellor Nadhim Zahawi and Baroness Michelle Mone - to pay closer attention to some of the other R&D tax relief claims submitted by ZLX and he found that Dundee United were one of a number of British football clubs to have benefitted from the scheme. Hibernian, Chelsea and Nottingham Forest were others and it's now believed that 33 clubs in the UK are under investigation by HMRC. United face a £600,000 bill after the club was order to repay a portion of its successful £1.28m claim for research and development tax relief. The tax relief claim covered 24 per cent of staff and player wages from July 1 2021, to June 30 2022. The Tannadice club also claimed for 80% of the club nutritionist's salary, 90% of the player analyst's salary and 21 % of the Tannadice heating and lighting bill. 'R&D relief is designed for people who are being completely innovative and in sport the first people who did data analytics in football could have claimed R&D tax credits for that,' explains Neidle. 'That's a legitimate innovation. 'It's possible that clubs might be doing innovative scientific work, you don't want to say it never happens. 'But not in this Dundee United case. Not based on the description given. 'And you certainly can't claim in court for staff wages as if your players are out there doing scientific research. 'Some people have said that maybe Dundee United didn't know what they were doing, that maybe they were just misled by ZLX. Whatever the reason it's difficult to see how they could have thought that this was legitimate.' Dundee United's tax relief claim centred around The United Lab. Launched in April 2020 the project was set up by former Sporting Director Tony Ashgar, recruitment coordinator Sean McGee, performance consultant Ryland Morgans and head of football research Dan Parnell to broker 'new channels for ideas and innovation.' All four men have now left the club with a Dundee United statement to the Courier confirming that the lab had ceased to exist in 2023. A spokesperson said: 'Dundee United Football Club can confirm we remain in constructive dialogue with HMRC regarding a Research and Development (R&D) tax claim submitted in 2021. 'As this is an ongoing process, we are unable to comment further on the details of the matter at this time. However, the club is fully engaged in the discussions and remains confident in a satisfactory outcome of the process for both parties. 'The R&D initiative known as 'The Dundee United Lab' ceased operations in March 2023 and no longer exists in any form, with all personnel previously involved in the project no longer employed or affiliated with the club in any capacity.' The plot thickened further when United's former finance director denied signing the document made public by Neidle last week. Employed at Tannadice between December 2018 and April 2023 Derek Bond – now a partner with Edinburgh firm Bond Accountants - is seeking legal advice after claiming the signature on the document was not his. The co-signatory on the document was ZLX Business Solutions consultant David Purvis. 'The document I've seen that purports to have my signature on it, isn't my signature,' he told The Courier. 'You can see on the document that someone has just typed 'Derek Bond'. 'That's not my signature on that document. 'I've spoken with a solicitor about that document. I've not signed that document.' Distancing himself from the HMRC investigation he added: 'It's galling, I don't want to be attached. 'There's a document with my name on it. I'm not saying it's forged. But somebody's typed my name and made it look like my signature but it is definitely not my signature.' While ZLX has yet to comment, Dundee United has assured fans the 'historical matter has no impact on the club's current or future operations'. 'HMRC won't say anything on the record,' adds Neidle. 'But I think they woke up rather late to the ways in which this R&D scheme was being abused. But it is an abuse. 'HMRC are pretty sure they will be able to get the cash back on this one. And it wouldn't surprise me if they try to charge penalties as well. Whether Dundee United can pay those as well is an interesting question. 'This is money which is being taken from the pockets of taxpayers at a time when we are all paying more tax because of the lack of tax revenue going into the government this is making it worse for everybody else. 'So, yes, it's an example of football taking money from the rest of us and it's not on. 'There is also a question, I think, for the Scottish League on the grounds of financial fairness. Generating free money by making fake tax claims doesn't seem very fair. 'It may need to go a little further but, really, the football rules should say that clubs are not allowed to do anything improper when it comes to tax.' While SPFL rules on HMRC obligations allow for punishment of tax arrears any disputed claim against a member club by the tax authorities can't be actioned 'until such time as a final determination is made on HMRC's claim.' In 2024 Hibernian also banked £1.2million in tax relief earmarked for research and development and Niedle believes the issue extends well beyond the boundaries of the SPFL Premiership. 'Across the UK we think 33 clubs are being investigated by HMRC across the UK over sums totally £13million. 'It's possible that some of them are not as crap as Dundee United's claim. It's equally possible that some of them are worse.' Earlier this year Neidle was invited to speak on a radio programme about the impact of Employee Benefits Trusts on football clubs in Britain. The financial impact on Rangers on the scheme proved catastrophic in 2012, posing an obvious question. When will football clubs actually learn their lesson when it comes to iffy tax schemes? 'You will know the answer to that better than me. 'The problem is that when you put that money into the pockets of well paid footballers public sympathy is likely to be thin on the ground. 'But I suspect that people who are desperate for money are not as critical as they should be when they are faced with free bags of cash…'
Yahoo
23-05-2025
- Business
- Yahoo
Labour-supporting tax expert slams Rayner's raid on taxpayers
A Labour-supporting tax campaigner has slammed Angela Rayner's proposals to reintroduce the lifetime allowance and freeze the top rate of tax threshold. The influential tax expert Dan Neidle said a number of the tax rises contained in Ms Rayner's leaked memo could deter investment in UK companies and undermine 'the progressivity of the tax system'. He also questioned whether some of the proposals could raise as much as the Deputy Prime Minister had suggested. The Telegraph revealed on Tuesday that Ms Rayner sent a secret memo urging Rachel Reeves to raise taxes instead of cutting spending. Mr Neidle is the founder of think tank Tax Policy Associates and also a member of Labour, however he has been critical of the party's policies in the past. The tax lawyer said that half of Ms Rayner's proposals 'make sense from a policy perspective', including closing the commercial property stamp duty loophole and removing inheritance tax relief on Aim shares. However he poked holes in some of the calculations on her memo. For example, he told The Telegraph that closing the stamp duty loophole for commercial property could raise anywhere between £700m or £2bn, as opposed to the estimate of £1bn cited in Ms Rayner's memo. In addition, scrapping inheritance tax relief on Aim shares would probably raise only a tenth of the £1bn figure mentioned by Ms Rayner, he wrote in an article for Tax Policy Associates. In the same article, Mr Neidle criticised Ms Rayner's proposal to reintroduce the lifetime allowance, a £1.07m cap on how much someone could save into their pension over their lifetime without incurring a tax charge. The cap was abolished by the Conservative government because it encouraged doctors to work fewer hours in order to avoid a huge tax bill. Mr Neidle said: 'These problems haven't gone away, and so it seems unlikely Labour is about to change its mind about changing its mind on the lifetime allowance.' Ms Rayner also proposed extending the freeze on the additional rate tax threshold beyond 2028, when it is currently set to rise in line with inflation. This would result in a larger number of workers paying 45pc tax as their wages crossed the £125,140 earnings threshold. Mr Neidle pointed out that the additional rate threshold was already much lower than it had been in recent years. For example, in 2009 the additional rate threshold stood at £150,000 – worth £240,00 in today's money. Mr Neidle wrote: 'Freezing tax thresholds is not good tax policy. It's a large tax increase, but a hidden one. It undermines the progressivity of the tax system to have the highest rates paid by more and more people. And it doesn't affect the seriously rich, just the moderately high-earning.' Mr Neidle also said the case for raising rates on dividend tax – another of Ms Rayner's proposals – was 'not persuasive'. Ms Rayner has pressed the Chancellor to align the higher and additional rates of dividend tax with those of income tax. As a result, a higher earner would pay 40pc tax on dividend income as opposed to the current rate of 33.75pc, while an additional rate taxpayer would see the charge jump from 39.35pc to 45pc. Mr Neidle said the UK's dividend tax rate was already 'one of the highest' in the Organisation for Economic Co-operation and Development (OECD) and warned that increasing it could deter investors. He wrote: 'We want to encourage people to invest in companies, and too high a rate of dividend tax won't do that.' The Deputy Prime Minister and the Cabinet Office were approached for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
23-05-2025
- Business
- Yahoo
Labour-supporting tax expert slams Rayner's raid on taxpayers
A Labour-supporting tax campaigner has slammed Angela Rayner's proposals to reintroduce the lifetime allowance and freeze the top rate of tax threshold. The influential tax expert Dan Neidle said a number of the tax rises contained in Ms Rayner's leaked memo could deter investment in UK companies and undermine 'the progressivity of the tax system'. He also questioned whether some of the proposals could raise as much as the Deputy Prime Minister had suggested. The Telegraph revealed on Tuesday that Ms Rayner sent a secret memo urging Rachel Reeves to raise taxes instead of cutting spending. Mr Neidle is the founder of think tank Tax Policy Associates and also a member of Labour, however he has been critical of the party's policies in the past. The tax lawyer said that half of Ms Rayner's proposals 'make sense from a policy perspective', including closing the commercial property stamp duty loophole and removing inheritance tax relief on Aim shares. However he poked holes in some of the calculations on her memo. For example, he told The Telegraph that closing the stamp duty loophole for commercial property could raise anywhere between £700m or £2bn, as opposed to the estimate of £1bn cited in Ms Rayner's memo. In addition, scrapping inheritance tax relief on Aim shares would probably raise only a tenth of the £1bn figure mentioned by Ms Rayner, he wrote in an article for Tax Policy Associates. In the same article, Mr Neidle criticised Ms Rayner's proposal to reintroduce the lifetime allowance, a £1.07m cap on how much someone could save into their pension over their lifetime without incurring a tax charge. The cap was abolished by the Conservative government because it encouraged doctors to work fewer hours in order to avoid a huge tax bill. Mr Neidle said: 'These problems haven't gone away, and so it seems unlikely Labour is about to change its mind about changing its mind on the lifetime allowance.' Ms Rayner also proposed extending the freeze on the additional rate tax threshold beyond 2028, when it is currently set to rise in line with inflation. This would result in a larger number of workers paying 45pc tax as their wages crossed the £125,140 earnings threshold. Mr Neidle pointed out that the additional rate threshold was already much lower than it had been in recent years. For example, in 2009 the additional rate threshold stood at £150,000 – worth £240,00 in today's money. Mr Neidle wrote: 'Freezing tax thresholds is not good tax policy. It's a large tax increase, but a hidden one. It undermines the progressivity of the tax system to have the highest rates paid by more and more people. And it doesn't affect the seriously rich, just the moderately high-earning.' Mr Neidle also said the case for raising rates on dividend tax – another of Ms Rayner's proposals – was 'not persuasive'. Ms Rayner has pressed the Chancellor to align the higher and additional rates of dividend tax with those of income tax. As a result, a higher earner would pay 40pc tax on dividend income as opposed to the current rate of 33.75pc, while an additional rate taxpayer would see the charge jump from 39.35pc to 45pc. Mr Neidle said the UK's dividend tax rate was already 'one of the highest' in the Organisation for Economic Co-operation and Development (OECD) and warned that increasing it could deter investors. He wrote: 'We want to encourage people to invest in companies, and too high a rate of dividend tax won't do that.' The Deputy Prime Minister and the Cabinet Office were approached for comment. Sign in to access your portfolio
Telegraph
02-04-2025
- Business
- Telegraph
Frankie Dettori, the porn baron and a plummet into bankruptcy
Barely a month later – as Dettori was preparing to enter the I'm A Celebrity jungle – the fateful hearing took place that would eventually lead to his legacy in Britain cast to be in a different light. The published January 2024 judgment which followed that hearing came to the attention of Neidle after the Upper Tribunal found there had been 'material errors of law' in the First-tier Tribunal's September 2021 decision to grant Dettori anonymity. The ruling said he had obtained the benefit of privacy despite failing to produce 'any evidence of harm or prejudice', something that risked 'a blanket derogation from open justice by the back door'. Before he could be named, Dettori sought permission to appeal, ultimately triggering fresh Upper Tribunal proceedings in October. He also withdrew his 'substantive appeal' over HMRC's pursuit of him for unpaid taxes, leaving him liable for that money, come what may. After Neidle publicised the case, TPA and media including the Press Association, The Times and The Sun joined forces with HMRC to oppose his latest anonymity application. A judgment throwing out that application followed in November and – after a deadline for appealing that expired – Dettori was named on December 9. Bankruptcy 'will affect me for many years' On what happened between Dettori being named and his shock announcement on March 13 that he was filing for bankruptcy, the man himself has said very little. His statement that day said he had been 'working with HMRC in an attempt to find a solution to my financial situation'. He also said: 'Bankruptcy is a major decision and its consequences will affect me for many years. I am relieved to be drawing a line on this long-term matter, which enables me to reset and focus on my international riding career.' Dettori declined to respond to questions about the documents seen by Telegraph Sport, whether he had ever met or spoken to Baxendale-Walker, and why the pair had both employed the same law firm. That was after Neidle wrote on X: 'Amazing that Dettori/his advisers thought it was a good idea to buy a scheme from a struck-off solicitor and convicted fraudster who gave negligent advice and then went bankrupt.' Dettori also declined to comment on how much he owed HMRC when he went bankrupt. Neidle told Telegraph Sport it was likely to run into 'hundreds of thousands or millions', on top of a probably six-figure bill in legal costs the jockey would have amassed during his various appeals. Neidle also said that for someone as wealthy as Dettori to use the kind of tax-avoidance scheme linked to Baxendale-Walker would be 'really unusual because people like that normally have proper advisers'. An HMRC spokesman said: 'We take a supportive approach to dealing with customers who have tax debts and do everything we can to help those who engage with us to get out of debt, such as offering instalment plans.' Dettori, who relocated from California to Florida in February, has been back racing – and winning – since his bankruptcy was confirmed on March 17. According to the Insolvency Service Register, he will be automatically discharged on the same date next year. With the trustee of his bankruptcy certain to closely examine his assets and future income to see if they can be used to pay HMRC and any other creditors, the full impact of going bust on Dettori remains to be seen.
