HMRC takes motor traders to task over £400k tax dodge

HM Revenue and Customs has now publicly identified five firms or individuals involved in vehicle sales or repair this year that it has branded "deliberate tax defaulters".

The six includes used car dealers, mechanics and vehicle roadside assistance firms which the HMRC has fined more than £300,000 in aggregate in addition to reclaiming the due tax which amounted to more than £400,000.

The biggest single offender was Ecarlogical, formerly of Oak Park Industrial Estate in Portsmouth, which defaulted on £201,937 tax in a two year period and received a penalty of £196,889.

Next was Yasar Hussain, of Schofield Street in Oldham, whose car sales defaulted on £116,274 tax and received a HMRC penalty of £66,858.

Mechanic John Thomas Forry, of Whyteleafe, Caterham, defaulted on £54,045 tax and was penalised £28,374.

Anderton Motor Group, formerly of Anderton Park Road, Birmingham, was found by HMRC to owe £54,378 tax and received a penalty of £38,065.

Roadside assistance firm V&H Recovery, formerly of Tent Street, London, had defaulted on £74,798 tax and was given a £28,797 penalty by HMRC.

HMRC has powers to criminally prosecute where it considers it necessary and appropriate, often leading to fully publicised trials and sentences.

But in cases where a criminal investigation is not commenced, HMRC's commissioners may decide to investigate suspected cases of fraud using its COP9 civil investigation of fraud procedure, in which they ask those investigated to sign a contract committing to making a complete disclosure of all their deliberate behaviour bringing about a loss of tax or duty and all other irregularities in their tax affairs, including those arising from non-deliberate behaviour, such as careless errors and errors made despite taking reasonable care.

HMRC can publish information about a person who deliberately evades tax or duty or where it charges a penalty for deliberate behaviour.