Skip to content 
Search

Latest Stories

Tory donor Lycamobile mired in tax disputes

Lycamobile, which has been a major Tory donor, is mired in three disputes with British tax authorities over unpaid dues.

The disputes related to corporation tax, VAT, PAYE and national insurance are spread over the past eight years, says a report in The Guardian.


Recently, HMRC issued an official demand under anti-tax avoidance laws in one case, while another one related to VAT has been referred to a tribunal.

The VAT dues alone amounted to £60 million, said the report. But the overall figure Lycamobile would have to pay if it loses the disputes is not clear, as HMRC does not comment on tax issues of individuals or companies and the telecom has not divulged details of its internal assessment.

Lycamobile maintains that it does not owe the taxes demanded by HMRC and “was is in discussions with the department”.

Incidentally, a fourth dispute over a £8 million bill was recently been resolved, after HMRC slapped a notice on the company.

Lycamobile, which was founded by Allirajah Subaskaran in 2006, has had a sound association with the Tories. The telecom giant had donated £2.1 million to the Conservative Party between 2011 and 2016, and supported Boris Johnson’s bid to be re-elected as mayor of London, says the report.

The campaign used the company’s Canary Wharf offices at least five times for tele-canvassing purposes. Lycamobile also sponsored Johnson’s Diwali bash at Trafalgar Square after his re-election as mayor in 2012.

In the same year, The Guardian had revealed that Lycamobile had not paid corporation tax for three years. It had flouted norms of publishing annual accounts on time and risked being struck off the UK’s business register.

In 2016, the company’s internal auditors conceded that its “complex web” of domestic and offshore operations was “so opaque” that they could not account for assets worth £134 million, the report points out.

In 2018, the HMRC was accused of refusing to assist French sleuths probing suspected money laundering by Lycamobile. A news series exposed a confidential email sent by HMRC, which had noted that the company was, at that time, “the biggest corporate donor to the Conservative party led by Prime Minister Theresa May and donated 1.25bn euros to the Prince Charles Trust in 2015”.

Subsequently, HMRC said the email was “regrettable”, but insisted that the organisation was “never influenced by political considerations”.

“After the French request was rejected, HMRC continued to liaise with the French authorities to explain the statutory requirements for a UK search warrant, and offered to meet the French judge face to face to explain those requirements,” said an HMRC statement.

Notably, in 2016, French investigators had raided Lycamobile’s Paris headquarters and arrested 19 executives.

More For You

Court to review teen's sentence in Bhim Kohli case
Bhim Kohli

Court to review teen's sentence in Bhim Kohli case

THE seven-year prison sentence handed to a 15-year-old boy convicted of the manslaughter of 80-year-old Bhim Sen Kohli is to be reviewed under the UK’s Unduly Lenient Sentence (ULS) scheme.

The Attorney General’s Office confirmed on Friday (5) that the teenager’s sentence will now be considered by the Court of Appeal.

Keep ReadingShow less
Dalai Lama hopes to live 'beyond 130 years'

Tibetan spiritual leader the Dalai Lama attends a prayer meet held for his long life at the Dalai Lama temple in the northern hill town of Dharamshala, India, July 5, 2025. REUTERS/Anushree Fadnavis

Dalai Lama hopes to live 'beyond 130 years'

THE Dalai Lama said on Saturday (5) he hopes to live until he is more than 130 years old, two decades longer than his previous prediction, following his assurance to followers that he would reincarnate as the spiritual head of the faith upon his death.

The Nobel Peace Prize winner was speaking during a ceremony organised by his followers to offer prayers for his long life, ahead of his 90th birthday on Sunday (6), and as China insists it will choose his successor. The Dalai Lama told Reuters in December he might live to 110.

Keep ReadingShow less
UK heatwave by mid-July

Daytime temperatures meeting or exceeding set thresholds of 25°C

iStock

Met Office warns of potential third UK heatwave by mid-July

Key points

  • Met Office forecasts rising temperatures by mid-July
  • Possible third heatwave after record-breaking June
  • High pressure system likely to bring hot air from the Atlantic
  • Yellow rain warning and flood alerts issued in parts of Scotland and Cumbria

Possible heatwave to return by mid-July

The UK could experience its third heatwave in a month by mid-July, the Met Office has said. Forecasters expect rising heat and humidity during the second weekend of July, following two weekends of unusually warm weather in late June.

June was officially the hottest on record in England, and the return of high temperatures could mean another heatwave for parts of the country. However, the Met Office cautioned that it is too early to confirm how hot conditions will get.

Keep ReadingShow less
crypto

Two men have been jailed for defrauding investors of £1.5 million through a fake crypto investment scheme. (Representational image: iStock)

iStock

Two jailed over £1.5m crypto investment scam

TWO people who duped investors of £1.5 million by selling fake investments in crypto have been jailed for 12 years, the Financial Conduct Authority (FCA) said.

Raymondip Bedi, of Bromley, and Patrick Mavanga, of Peckham, conned at least 65 people by cold-calling them between February 2017 and June 2019. They operated companies including CCX Capital and Astaria Group LLP.

Keep ReadingShow less
Manchester Police probes over 1,000 child sexual abuse suspects

Photo for representation. (iStock)

Getty Images/iStockphoto

Manchester Police probes over 1,000 child sexual abuse suspects

GREATER MANCHESTER POLICE is now investigating more than 1,000 child sexual abuse suspects, following years of public criticism and institutional failings in tackling child sexual exploitation.

A new report by His Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS) has revealed the force has made “significant improvements” in dealing with group-based sexual abuse and related crimes.

Keep ReadingShow less