Govt issues VAT warning

Date: 14th November 2011

Small business owners and others working in the UK have been issued a warning regarding the country's VAT rules.

HM Revenue & Customs (HMRC) has warned that it will not tolerate dishonesty where its tax rules are concerned.

It comes after a former policeman was jailed for ten years and three months for his part in a £330 million VAT fraud scam.

The former PC and five others were caught by an HMRC investigation to have used invoices from hijacked or fictitious companies to claim turnover of £2.4 billion.

Ideas 2 Go Ltd claimed to have sold more than six million mobile phones - generating a fraudulent VAT claim of £330 million.

Exchequer secretary David Gauke said: "This government will not tolerate dishonest people stealing public money. This sentence shows that those who try to commit fraud need to think again - HMRC will find you and the courts will punish you.

"The additional £917 million we have invested in HMRC will see more cases like this successfully prosecuted, sending a clear and powerful message."

Posted by Emily Smith