London Daily

Focus on the big picture.
Wednesday, Jan 14, 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
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
×