Tech Nation lobby group locked in row with HMRC

A PUBLICLY funded technology lobby group is embroiled in a long-running row with HMRC over its taxes.

Tech Nation, which is chaired by investor Eileen Burbidge and has received tens of millions of pounds from the state, said in its latest accounts that it is addressing “historic claims” by the taxman.

HMRC is examining its status dating back to 2014 as part of the dispute.

Tech Nation, which sponsors visas for people hoping to work in the UK technology industry, said in the accounts that it expects the dispute to be resolved by the end of 2020 and that it has been advised it may not have to pay any money out.

It said: “Professional advice received does not indicate that a payment is probable.”

The lobby group previously expected to resolve the situation by the end of this year, its previous accounts showed.

Tech Nation offers advice to entrepreneurs on topics including hiring staff, preparing for Brexit and claiming tax breaks from the Government.

Formerly known as Tech City UK, the organisation was renamed in 2017 as part of a £21m injection of funding from the Government which broadened its focus to the entire country instead of London’s technology sector alone.

Its wide remit provoked criticism earlier this year when executives from technology businesses in the North East claimed Tech Nation was not “in touch with local ecosystems” and was “failing to understand grassroots issues” in a report.

Tech Nation was recently given another £2m by the Ministry of Justice to help promote the development of technology used in legal fields.

The organisation is given an allocation of 200 exceptional talent visas per year and saw a 45pc rise in applications for the visas earlier this year, it has said.

Research produced by the organisation has found that US and Asian investors have more than doubled their investment into British tech start-ups in this first half of this year.

A spokesman said: “It’s a technical matter involving interpretations of Tech Nation’s status by HMRC dating back to 2014. We are working through appropriate procedures with HMRC to resolve.”

A spokesman for HMRC declined to comment.