VAT Fraud / Carousel Fraud / MTIC Fraud

Edward Hayes Solicitors and Higher Court Advocates have established themselves firmly at the top of the table when it comes to missing trader intracommunity fraud or carousel fraud as it is also known.

From both a civil and criminal defence point of view this is a highly specialised and complex area of work where only specialists should deal. We are asked to speak at national events and have been involved in some of the largest cases. We have the knowledge and skills to challenge and fight back for you.

What is carousel fraud? In simple terms a UK VAT registered company purchases mobile phones or computer chips, CPUs or other vatable items from another EU VAT registered country. They are not charged VAT and are expected to account for acquisition tax when they purchase the goods. However, what usually happens is that the business (typically a start up) suddenly generates turnover worth many, sometimes hundreds of, millions of pounds, selling the VAT free acquisitions to UK companies and charging them VAT. The company then disappears before it sends in its VAT return and never pays the output VAT over. The goods continue to move through a chain of transactions (buffers) and eventually are exported from the UK, ending up where they started ready to go round again. It is not uncommon to find the same goods going round and round five or six times in a few months. This is a highly simplified example - however the dangers are apparent as innocent businesses and individuals frequently become embroiled.

A number of strategies have been implemented by HMRC, many of which have impacted harshly upon innocent traders following the Bond House victory at the ECJ. Payments are being withheld leaving the only recourse to a VAT tribunal or ultimately judicial review in the High Court.

If you or a colleague or business is investigated the consequences can be catastrophic.

You should contact our specialist Fraud Department immediately.

Contact Us

Please contact Christopher Hayes. Email chayes@edwardhayes.co.uk
Telephone 0207 917 6197. Fax 0207 917 6198.
Emergency (24 hours a day 365 days a year) telephone 0800 085 9684.