Susan Elan Jones MP – “I believe Dyson should pay back every penny” - People's Vote

Susan Elan Jones MP – “I believe Dyson should pay back every penny”

Despite already being one of Britain’s richest men, Sir James Dyson’s decision to move his company’s HQ to Singapore could well be motivated by his obsessive desire to lower his corporate tax bill, new research from the People’s Vote campaign suggests.

The campaign also reveals that the farm owned personally by Sir James – Beeswax Dyson in Lincolnshire – received £4.2 million of European subsidies across 2016 and 2017 – money the campaign says he should pay back.

Dyson has demanded that corporation tax – paid by companies on profits – be abolished and is moving his business HQ to Singapore where corporation tax rates are amongst the world’s lowest.

The move to Singapore will result in the Brexit-backing tycoon’s business saving an average of more than £10 million each year in corporation tax.

The total loss to the UK exchequer of Dyson’s company no longer paying tax in this country is an average of more than £80 million annually. Prior to the EU referendum in 2016, Dyson said that Brexit would make Britain better off.

The business tycoon has previously attacked UK transparency rules on business accounts, and reportedly participated in film schemes set up to avoid tax.

Despite supporting a hard Brexit, Dyson has been happy to collect EU subsidies for his Lincolnshire farm at Nocton. In 2016 the farm got £1,819,793 and in 2017,  £2,361,989.31.

 

Commenting, Susan Elan Jones MP, leading supporter of the People’s Vote campaign, said:

“James Dyson is the worst sort of pro-Brexit establishment hypocrite, happy to take EU handouts but doing everything he possibly can within the law to avoid paying tax by moving his businesses not just out of Britain but out of the EU.

“His farm got £4.2 million from the EU between 2016 and 2017 and I believe he should pay back every single penny. If he doesn’t want his businesses to pay our taxes he shouldn’t be getting the benefits they provide.” 

There is no suggestion that any action by Sir James Dyson, his family or his firms is unlawful in any way.

/ends

 

Notes to Editors

It has been reported that James Dyson plans to move his corporate head office and tax base to Singapore after Brexit (Sky News, 22 January 2019, link).

Weybourne Group Limited (prior to 2017 Holkham Group Limited), James Dyson’s holding company that owns Dyson, averages a pre-tax profit of more than £400 million over the past five years. This means the company pays an average of £80 million in corporate tax to the Exchequer each year – money that will be lost to the British public purse after Dyson’s move.

After Dyson’s move to Singapore, which has a corporate tax rate of 17% - significantly lower than Britain – this amount will reduce by an average of more than £10 million annually.

 

Year

2013

2014

2015

2016

2017

Pre-tax profit

£284,300,000 

£303,500,000 

£305,100,000 

£473,000,000 

£680,000,000 

UK corporate tax (20% until 2016, then 19%)

£56,860,000

£60,700,000

£61,020,000

£94,600,000

£129,200,000 

Singapore corporate tax rate (17%)

£48,331,000

£51,595,000

£51,867,000

£80,410,000 

£115,600,000 

Difference

£8,529,000

£9,105,000

£9,153,000

£14,190,000

£13,600,000

(Weybourne Group Limited (prior to 2017 Holkham Group Limited) Accounts, Companies House, accessed 23 January 2019)

 

Previous reports of Sir James Dyson’s tax arrangements

“Sir James Dyson, the champion of British engineering, has quietly transferred his £1.5billion business empire offshore in a move that could save him hundreds of millions of pounds in tax. Financial Mail has established that in 2009 the vacuum cleaner entrepreneur sold his business to Clear Cover Limited, a company that he owns, which is incorporated in Malta. The following year he sold the business again, this time to another Maltese company owned by him, Dark Cover Limited.” (link)

Dark Cover Limited, based in Malta, was owned by Holkham Group (now Weybourne group) according to the paradise papers. (link) Pale Cover Limited was owned by something called Weybourne Investments Holdings. (link)

Clear Cover Investments, also based in Malta, was owned by James Dyson and his family. (link)

 

“James Dyson has slammed UK rules that force privately owned companies to file accounts that can be viewed by the public, describing them as “anti-competitive” and handing an advantage to overseas rivals. The billionaire inventor, famous for his bagless vacuum cleaners, said he saw “no reason” why private concerns such as his own should have to make the financial disclosures.”

(Financial Times, 1 March 2018, link)

 

“The inventor Sir James Dyson is an investor in three different film schemes run by firms embroiled in tax-avoidance scandals, The Sunday Times can reveal. The 71-year-old vacuum cleaner tycoon is a member of Tamar Films, Tyne Films and Future Screen Partners — all schemes that delay the payment of taxes.” (The Times, November 2018, link)

 

On 11 November 2018 Sir James used his appearance on the BBC’s Marr programme to call for the abolition of corporation tax saying: “A tax on profits is the wrong way to tax people.” (link)

 

People’s Vote have organised a petition calling on James Dyson to pay back his EU subsidies: https://www.peoples-vote.uk/dyson_petition