HMRC’s anti-fraud team is examining Horlick’s London-based company over an alleged failure to pay millions of pounds in tax on income received during the pandemic. Ayanda, whose parent company is registered in Mauritius, secured a £255 million PPE contract with the Department of Health in 2020 despite having no previous experience in protective equipment. The company had specialised in currency trading, offshore property, private equity, and trade financing before the deal, which was awarded through the government’s VIP procurement lane.
The contract, brokered by Andrew Mills, a former adviser to then trade secretary Liz Truss, saw Ayanda deliver 50 million masks to the NHS, of which tens of millions were rejected due to safety concerns. HMRC is investigating transactions related to the PPE deal, which involve both UK and offshore entities, to determine whether tax obligations were met and whether official documents contained incorrect information. Ayanda denies any wrongdoing, stating it is fully co-operating with legally confidential HMRC inquiries. Horlick also denies any wrongdoing.
HMRC is believed to be investigating under code of practice 8, typically applied in cases where taxpayers deliberately attempt to reduce tax liability or use schemes to evade payment. The agency has broad powers to collect evidence, including executing search warrants and making arrests.
In late 2020, the National Audit Office reported that tens of millions of masks supplied by Ayanda did not meet NHS standards and would not be used for their original purpose. The audit also highlighted a lack of documentation addressing potential conflicts of interest regarding senior government advisers.
The High Court ruled in 2022 that the use of the VIP lane to award contracts to Ayanda and PestFix was unlawful. However, the judge noted it was likely the contracts would have been awarded regardless, given the urgent PPE shortages, leading both the companies and campaigners to claim partial success.
Ayanda continues to face legal challenges, including a recent £15 million claim from a public relations firm for unpaid commissions. This tax investigation represents the first public disclosure of HMRC scrutiny into the firm and follows other high-profile PPE company inquiries. The National Crime Agency has also investigated PPE Medpro, which was involved in a £203 million PPE deal. Both Baroness Mone and her husband, Doug Barrowman, have denied wrongdoing in that case.
Horlick, 64, studied philosophy, politics, and economics at Oxford and worked in investment banking before entering venture capital and private equity. He previously married Nicola Horlick, a well-known fund manager in the City, but they divorced two decades ago.
According to Companies House, Ayanda Capital was incorporated in 2017. Its accounts for the year ending December 2020 reported a turnover of £247 million, up from £460,000 the previous year, and an operating profit of £20 million, up from £320,000, with £3 million owed in corporate tax.
HMRC retains the option to upgrade the inquiry to code of practice 9, reserved for investigations indicating deliberate fraud, which may result in criminal proceedings and potentially a prison sentence if proven.
