Members of St Pauls Chambers are specialists in the prosecution and defence of cases investigated by HM Revenue and Customs, both in criminal and civil jurisdictions.

What is HMRC VAT Fraud?

VAT fraud refers to a form of tax evasion. As stated on the government website, VAT evasion can be committed as a result of someone:

  • Asking you to pay cash for a job or sale as a way of avoiding VAT
  • Asking you to make a payment to someone other than the business, or multiple different people
  • Not registering for VAT when they should
  • Claiming to have applied for a VAT number when they haven’t
  • Using a VAT number that is fake or belongs to someone other than themselves

HMRC VAT Fraud Investigation

If anyone becomes suspicious of an individual or business, they can report VAT fraud and an investigation will be opened. VAT investigations include a variety of allegations against businesses and individuals and are usually brought by HM Revenue and Customs (HMRC). If you’re accused of VAT fraud, you might also be investigated by the Serious Fraud Office (SFO) or National Crime Agency (NCA).

Innocent businesses can be caught in the criminality of complex organised crime, and sometimes legitimate companies and their directors can be targeted unfairly by HMRC in criminal and civil proceedings. The level of knowledge and participation on the part of the defendant is relevant to formulating a defence. Some companies could be operating in the passage of goods without realising.

Suspicion by the HMRC that a business has been involved in VAT fraud can result in the business being subjected to a raid, its directors and employees being arrested, accounts frozen by the use of restraint or freezing orders and a likely visit to the police station for an interview. It can take years before a charge for VAT fraud can be laid because of the sheer magnitude and nature of such organised crime.

As with all matters of VAT fraud, your legal team must be familiar with the extensive terminology and the flow of such complex organised crime. VAT fraud cases can become very complicated and depend on an expert to build a defence in this case. To see what cases our VAT fraud barristers have been involved in, visit our blog.

VAT Fraud Sentencing

In the event of your case going to court, you could be convicted of VAT fraud, leading to a maximum sentence of seven years and a fine of up to £20,000.

Sentencing Guidelines use levels of culpability to ascertain the role of the offender, the extent of planning behind the offence, and other factors determining the sophistication of the operation.

A – High Culpability
  • A leading role where the offence is part of a group activity
  • When others are involved through pressure or influence
  • An abuse of position of power, trust, or responsibility
  • Significant planning of the offence
  • Fraud conducted over a long period
  • High number of victims
  • Deliberately targeting vulnerable victims
B – Medium Culpability
  • A significant role where the offence is part of a group activity
  • Other cases may fall between categories A or C because:
    • Factors are present in both A and C, balancing each other out and/or
    • The offender’s culpability falls between the factors as described in A and C
C – Lesser Culpability
  • The offender has a peripheral role and is involved through coercion or exploitation
  • The offence isn’t motivated by personal gain
  • The offence is ‘one-off’ or opportunist with very little or no planning
  • The perpetrator has limited awareness or understanding of the extent of fraudulent activity

Sentencing is made with these levels of culpability taken into account. Possible sentencing can also include restraint orders, financial reporting orders, disqualifications, frozen assets, and more.

If you’ve been accused of HMRC VAT fraud, we advise consulting an experienced VAT fraud barrister as soon as possible to increase your chances of a successful appeal and building a robust defence.

“The clerking team is responsive, extremely approachable and knowledgeable”

The Legal 500

Get in touch

For further information and enquiries please contact our clerks team.

HMRC VAT Fraud Barristers

Sam Green KC

Sam Green KC

Joint Head of Chambers

Call: 1998 Silk: 2015

Nigel Sangster KC

Nigel Sangster KC

Call: 1976 Silk: 1998

Richard Barraclough KC

Richard Barraclough KC

Call: 1980 Silk: 2003

Simon Myerson KC

Simon Myerson KC

Call: 1986 Silk: 2003

Jane Bewsey KC

Jane Bewsey KC

Call: 1986 Silk: 2010

John Harrison KC

John Harrison KC

Call: 1994 Silk: 2016

Jonathon Sandiford KC St Pauls Chambers

Jonathan Sandiford KC

Call: 1992 Silk: 2020

Cameron Brown KC

Cameron Brown KC

Call: 1998 Silk: 2020

Nicholas Worsley KC

Nicholas Worsley KC

Call: 1998 Silk: 2023

Denise Breen-Lawton

Denise Breen-Lawton

Joint Head of Chambers

Call: 2000

Jeremy Barnett

Jeremy Barnett

Call: 1980

Derek Duffy

Derek Duffy

Call: 1997

Alasdair Campbell

Alasdair Campbell

Call: 1999

James Bourne-Arton

James Bourne-Arton

Call: 2001

Danielle Graham

Danielle Graham

Call: 2003

Hal Watson

Hal Watson

Call: 2003

James Lake

James Lake

Call: 2005

Helen Chapman

Helen Chapman

Call: 2006

Hannah Hinton

Hannah Hinton

Call: 2008

Angus MacDonald

Angus MacDonald

Call: 2009

George Hazel-Owram

George Hazel-Owram

Call: 2012

Kristina Goodwin

Kristina Goodwin

Call: 2013

Jessica Heggie

Jessica Heggie

Call: 2017

Contact Us

Chambers is centrally located within walking distance of the train station, secure car parks and the Courts.

Contact Us

St Pauls Chambers
Park Row House
19-20 Park Row
Leeds
LS1 5JF

For out of hours assistance please call the senior clerk on 07854170429.

The switchboard will open from 08:30 until 17:30

Phone: +44 (0)1132 455 866
Email: [email protected]
CJSM: [email protected]

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