HMRC Investigative Tactics Revealed
A recent VAT case made the national press because of excessive assessments by HMRC. They asked for £930,000 of unpaid VAT + penalties. The Tribunal said it should have been £11,000!
I am not writing because of that anomaly, but because the transcript reveals HMRC caught the offender by patrolling the streets, noting signs of construction companies and checking that they were declaring VAT on sales at those sites. The offender in this case had invoice(s) for only one of the ten sites HMRC saw his sign outside.
This should serve as a warning to anyone seeking to evade tax.
Santa Claus may not be watching your every move, but the VATman just might be.