London Daily

Focus on the big picture.
Tuesday, Jun 16, 2026

Nadhim Zahawi paid penalty as part of HMRC tax dispute

Nadhim Zahawi paid penalty as part of HMRC tax dispute

Nadhim Zahawi paid a penalty to resolve a dispute with HM Revenue & Customs over unpaid tax, the BBC has been told.

The Conservative Party chairman has said an error in his tax affairs was accepted by HMRC as having been "careless and not deliberate".

On Saturday he said he made a payment to settle the issue. But while it had previously been reported this included a penalty, it had not been confirmed.

On Sunday evening, Mr Zahawi's allies insisted he would continue in his role.

The BBC understands the dispute was resolved while Mr Zahawi was chancellor between July and September last year - and the total amount paid is in region of what has been reported, about £5m.

Pressure has been growing on Mr Zahawi to give more details about his finances after reports emerged this week he had agreed to pay millions of pounds to HMRC to settle his tax affairs.

The Guardian had previously reported that Mr Zahawi paid back tax he had owed, as well as a 30% penalty, with the total settlement amounting to £4.8m.

The tax was related to a shareholding in YouGov, the polling company he co-founded in 2000 before he became an MP.

Mr Zahawi has not confirmed how much his penalty amounted to, nor the total value of the final settlement with HMRC.

Labour said there were a whole list of questions that still needed answers - and called on him to publish all his correspondence with HMRC "so we can get the full picture". Labour also said there are questions over the timing.

Although the BBC has been told the issue with HMRC was resolved while Mr Zahawi was chancellor - and the minister ultimately responsible for HMRC - but it is still not clear when he originally became aware of it.

His allies claim he told the government's Propriety and Ethics Team - which is in charge of ensuring ethics across government departments - about it before his appointment as chancellor.

And after having become chancellor, Mr Zahawi did not seek to challenge HMRC's demands, but instructed his accountants to pay all of what they said was due, the BBC has been told.

On Sunday, senior Conservative Sir Iain Duncan Smith then joined the calls for more scrutiny, urging Mr Zahawi to release "the absolute facts" and "get it all out now, whatever you have to do and clear it up".

But he defended Mr Zahawi, saying he did not believe he was "deceitful".

Foreign Secretary James Cleverly said it was for Mr Zahawi to decide "how much detail to put in the public domain".

The BBC was previously told on Saturday that Prime Minister Rishi Sunak was satisfied with Mr Zahawi's account and has confidence in him as chairman of the Conservative Party.


Who is Nadhim Zahawi?


Nadhim Zahawi was announced as chancellor on 5 July 2022, hours after the resignation of Rishi Sunak from Boris Johnson's government.

He was previously education secretary and before that, coronavirus vaccines minister. He was made minister for equalities, minister for intergovernmental relations, and chancellor of the duchy of Lancaster under Liz Truss.

Mr Sunak appointed him as Conservative Party chairman and minister without portfolio, attending cabinet, on 25 October.

Mr Zahawi has been the Conservative MP for Stratford-on-Avon since 2010.


Watch: Cleverly defends Zahawi over tax avoidance claims


Newsletter

Related Articles

0:00
0:00
Close
Government Approves Fast-Tracked Broadcast Merger Reshaping UK's Media Landscape
Resignation of Defence Secretary John Healey Triggers Debate Over UK Military Strategy
Britain Intensifies Diplomatic Efforts to Support US-Iran Ceasefire
Bank of England Faces Tough Interest Rate Choices After Economic Contraction
Belfast Sees Second Day of Anti-Migrant Riots as Police Deploy Water Cannons
UK Economy Shrinks in April as Energy Price Shocks Weigh on Growth
UK to Ban Social Media Access for Children Under 16 From 2027
UK Parliament Opens Week of Fast-Tracked Security and Infrastructure Legislation
Northern Ireland Projects £21 Million Boost From Major Cultural and Sporting Events
UK and Japan Sign Technology Security Pact to Strengthen AI and Supply Chain Cooperation
UK Welcomes US-Iran Peace Breakthrough Aimed at Restoring Strait of Hormuz Shipping
British Forces Intercept Russian Shadow Fleet Oil Tanker in English Channel Sanctions Operation
UK to Ban Social Media for Under-16s Under Landmark Online Safety Expansion
Anti-Immigrant Riots Spread Across Belfast, Raising Security Concerns
Ministry of Defence Opens Europe's Largest Drone Testing Facility in Swindon
Kemi Badenoch Calls for Deregulation to Restore City's Global Competitiveness
UK Housing Market Posts Sharpest June Price Decline in Fourteen Years
NHS Waiting Lists Rise to 7.22 Million as Diagnostic Delays Reach New Highs
Makerfield By-Election Raises Prospect of Labour Leadership Challenge
Bank of England Expected to Hold Interest Rates at 3.75% Despite Growing Policy Divisions
Royal Marines Seize Sanctioned Russian Oil Tanker in English Channel
Prime Minister Keir Starmer Set to Ban Social Media and AI Chatbots for Under-16s
United Kingdom Markets Rally After US-Iran Deal Reopens Strait of Hormuz
Defence Secretary John Healey Resigns Over Military Spending Dispute, Triggering Cabinet Crisis
Royal Navy Takes Part in Trooping the Colour for the First Time in 350 Years
Think Tank Warns Labour's European Union Reset Could Carry Significant Economic Costs
UK Semiconductor Centre and Japan's Rapidus Forge Advanced Chip Manufacturing Partnership
UK and Japan Launch Offshore Wind Compact Backed by £9 Billion in Investment
Starmer and Trump Discuss Iran Peace Efforts and Reopening of the Strait of Hormuz
United Kingdom and Japan Sign £18 Billion Investment Partnership Focused on Clean Energy and Advanced Technology
Barclays Moves to Acquire GoHenry in Bid to Expand Youth-Focused Fintech Services
UK Lupus Patients Show Remission in NHS Genetic Therapy Trial
London Clean Air Zones Linked to Fewer Emergency Hospital Admissions for Respiratory Illness
UK World Cup Scheduling Research Suggests Energy Bill Savings From Off-Peak Usage
UK Economic Anxiety Rises Among Young People Over Long-Term Job Prospects
NHS Expands Meningitis B Vaccination Programme for School Leavers and New Students
London Ultra-Low Emission Zone Linked to Drop in Emergency Respiratory Hospital Admissions
Derbyshire Police Officer Investigated Over Alleged Use of AI-Generated Evidence in Case Files
UK Parents Back Proposed Under-16 Social Media Ban as Online Safety Concerns Grow
Four Palestine Action Activists Jailed Over Sabotage Attack on Israeli-Linked Arms Facility
Barclays to Acquire GoHenry in Push to Expand Digital Banking for Children and Teenagers
UK Government Reaffirms Defence Spending Commitment Amid Cabinet Pressure and Political Disputes
Belfast Unrest Prompts Security Review as Paramilitary Activity Comes Under Renewed Scrutiny
SpaceX IPO Pushes Elon Musk to Become World’s First Trillionaire After Record Valuation Surge
United States and Iran Near Landmark Peace Framework as Negotiations Reach Final Stages
UK Competition Watchdog Investigates Ryanair Family Seating Charges
Imperial College Study Links London Emissions Charges to Lower Hospital Admissions
Scottish First Minister Launches US Trade Initiative Ahead of World Cup Match in Boston
Fifteen Million Workers Gain Expanded Sick Pay Rights Under UK Reforms
British Retail Investors Secure Record Participation in SpaceX Share Offering
×