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VAT fraud

Feb 5, 2010, 06:02 AM
Authors : Richard Curtis
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Post date : Feb 5, 2010, 06:02 AM

An item on the Citywire website caught my eye the other day; ‘A VAT fraud which you can help stop’.

Basically, this involves businesses that use petrol or diesel and isn’t actually anything new.

It works by the trader obtaining – even purchasing – additional VAT receipts for fuel; the VAT is claimed back on the basis that this is a business expense and, of course, an income or corporation tax deduction would also be claimed.

I would have thought that HMRC, given the resources, would pick this up by comparing the use and profit levels of similar businesses.

I was wondering if such scams were on the increase and if readers have any comments to add, please do so below.

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