News
‘I received 6,000 letters from HRMC – all Chinese companies registering for VAT’
A WEST WALES landlord has been overwhelmed with an astonishing number of letters from HM Revenue and Customs (HMRC) after more than 11,000 overseas Chinese companies used his address to register for VAT.
Dylan Davies, an estate agent from Ceredigion who owns a flat in Cardiff, expressed his frustration at receiving over 6,000 letters to his apartment since September of last year.
Tax officials have stated that they have found “no evidence of any fraud” in this peculiar situation. Mr. Davies, 65, recounted his initial surprise when he discovered a cascade of brown envelopes tumbling out of his letterbox. “Back in September, I was there one day and opened the letterbox and all these brown envelopes fell out.
“I counted about 580 that one time,” he told Herald.Wales.
When his attempts to contact HMRC failed to yield a response, he turned to the Welsh BBC consumer show X-Ray, which subsequently aired his story.
“That woke up everybody then. All of a sudden I heard from HMRC,” he said. “By that time [the end of 2022], I think I had about 3,000 letters. Now I’ve had over 6,000 letters…I had a letter from HMRC in March that they would be looking into it. They apologized…they made sure that no more post would arrive at my address – but they’re still arriving. I had 20 there last week.”
Among the deluge of letters were demands from debt collection agencies. “[X-Ray] opened a small amount of those, and the debt was over half a million…that was only a small portion of the letters I’ve had.” Mr. Davies admitted that the ordeal had been a “very, very worrying time” before X-Ray intervened.
“I was just knocking my head against the wall. I just wanted somebody to recognize I had this issue…just to show that I was innocent in all this. But I couldn’t get any responses,” he explained. He added, “I was having visions of bailiffs coming and charging the door down one night and taking everything you’ve got in the house.”
Mr. Davies also expressed concern about the potential impact on his own business due to the incident. “It was the worry of what word would get about – like whether I’m involved in VAT fraud…if I woke up in the middle of the night, I wouldn’t go back to sleep because it just worries you.”
According to Mr. Davies, his solicitor had sent two letters to HMRC prior to the BBC show, but they did not receive a response. During a recent appearance before the House of Commons Public Accounts Committee, HMRC CEO Jim Harra apologized for the delay in responding to Mr. Davies’ solicitor. He explained that the letter had been delivered to an old HMRC address and took some time to be redirected, before being “mishandled” within the department.
By the time HMRC finally addressed the issue, Mr. Davies had already gone public with his story. Mr. Harra expressed gratitude for Mr. Davies contacting the department and apologized for the lack of prompt action following their initial contact. He described the incident as “very odd” and “very curious,” but reassured the committee that HMRC was confident that no fraud had been committed against them as a result.
“We have been seriously investigating it, but at this point, we cannot find any indication of wholesale fraud as a result of it. Whether it was an unsophisticated attempt to do so, which didn’t work, it’s difficult to tell,” Mr. Harra stated.
He further explained that the businesses in question were overseas firms selling goods to the UK through online marketplaces
like eBay or Amazon. A change in the law in January 2021 mandated that online marketplaces collect VAT from foreign businesses and remit it to HMRC.
Mr. Harra noted that HMRC was aware of the risk of overseas businesses impersonating UK entities to avoid accounting for VAT through the online marketplace. However, additional checks carried out by these platforms prevent such deception. “Simply registering at a UK correspondence address does not pass those tests. So that in itself could not con an online marketplace into thinking that they are a UK business. And sure enough, when we have looked into businesses on this long list, we’ve found that for the vast majority of their sales via online marketplaces to UK customers, VAT has been accounted for by the online marketplace [since 2021],” explained Mr. Harra.
Out of the 11,000 businesses registered at Mr. Davies’ address, over 2,356 owe a tax debt to HMRC, but these debts pre-date the 2021 online marketplace rule, making the companies primarily responsible for payment. However, there is currently no requirement for proof of residence at a UK address when registering for VAT.
“We have no address with which to correspond with these 2,300 businesses until we have resolved the addresses issue,” Mr. Harra informed the committee. HMRC conducts additional checks, including requesting evidence of business establishment at the provided address, for applications or changes in registration that meet certain risk criteria.
According to Mr. Harra, it would be highly unusual for fraudsters to use an address not under their control. When asked if HMRC systems flag instances where a large volume of letters is sent to a single address, he clarified that it is quite common for a significant number of foreign businesses to register at a single serviced office correspondence address in the UK, where their tax agent can handle the extensive correspondence on behalf of overseas clients.
Ben Lake, the Plaid Cymru MP for Ceredigion, expressed concern about HMRC’s systems in light of a residential address in Wales unexpectedly receiving over 11,000 letters and businesses changing their address to that property. He sought reassurance that his constituent would not face any formal demands or enforcement action from HMRC due to the mix-up.
Mr. Harra stated that HMRC took action in March to prevent further correspondence to Mr. Davies’ address. However, when Mr. Lake pointed out that his constituent had continued to receive letters since then, the tax boss admitted that their existing systems were imperfect and promised to explore implementing additional alerts.
Mr. Harra affirmed that HMRC is still conducting investigations into the incident, acknowledging the tremendous inconvenience and distress it has caused Mr. Davies. The department is also reviewing its procedures to prevent a recurrence of similar incidents in the future.
Health
Rising trend of private healthcare use among friends and family in Wales
MORE than half of UK residents report having close family or friends who have used private healthcare services, according to the latest data from the Independent Healthcare Providers Network (IHPN). In Wales, this figure is 58%, slightly above the UK-wide average of 55%. Meanwhile, 32% of Britons have used private healthcare themselves, with regions such as the East Midlands (64%) and Northern Ireland (59%) showing even higher familiarity with private healthcare options.
David Hare, Chief Executive of IHPN, said: “Private healthcare is becoming more mainstream, with people increasingly opting for private services to access healthcare more easily and quickly. Our findings highlight that most people in the UK know someone close who has used private healthcare, whether through insurance or self-pay. This demonstrates a shift toward private healthcare as a convenient and accessible option.”
The survey found that 45% of those choosing private healthcare did so because of long NHS waiting times, while 27% preferred the ease of booking private appointments. Around 20% receive private healthcare through work, and 17% believe private services offer higher-quality care. Accessibility is another key factor, with half of respondents agreeing that private healthcare is more accessible than NHS options.
Top Treatments Accessed Privately:
- Doctor consultation: 45%
- Diagnostic treatment (e.g., scans): 45%
- Other healthcare professional consultations: 35%
- GP appointments: 34%
- Minor operations (same-day discharge): 25%
- Major operations (overnight stay): 16%
- Ongoing serious condition treatment (e.g., cancer): 5%
IHPN’s Five Steps to Choosing Private Healthcare
If you’re considering private healthcare, IHPN suggests these key steps:
- Do Your Research: Consult inspection reports from national care regulators like the Care Quality Commission (CQC) in England and the Private Healthcare Information Network (PHIN). Scotland and Wales have independent inspectorates, available at hiw.org.uk and healthcareimprovementscotland.scot.
- Explore Payment Plans: Many providers offer flexible payment options, making private care more affordable.
- Find Local Options: Use resources such as ihpn.org.uk or phin.org.uk to locate private providers nearby.
- Take Control: It’s your choice; seek recommendations from friends and family or consult online ratings to find the right clinician or clinic. Your GP can also offer support.
- Book a Consultation: Before committing, schedule a consultation with a private provider to discuss treatment options and ask questions. Bring someone you trust if you wish, and take notes.
For more information on private healthcare options in the UK, visit ihpn.org.uk. For additional information, interviews, or case studies, contact Helen Trevorrow at 0794 000 9138 or [email protected].
Source: Statistics are from the “Going Private 2024” report by IHPN and Public First, based on a survey of 2,004 respondents across the UK.
Health
Smoke-free ambitions clouded by concerns over illicit market
THE UK government introduced its Tobacco and Vapes Bill in Parliament today, aiming to create a “smoke-free generation” by prohibiting anyone born after 1 January 2009 from legally purchasing cigarettes for the rest of their lives. The Bill also proposes strict new restrictions on nicotine products, including vapes, heat-not-burn products, and nicotine pouches.
Public health experts in Wales are largely supportive of the new legislation, seeing it as a potential driver in reducing the strain on the NHS in Wales. Smoking-related illnesses are a major contributor to healthcare costs, and advocates argue that curbing smoking among future generations will yield long-term health and economic benefits. This could be especially impactful in Welsh regions where smoking rates are persistently high.
However, there is also concern about how restrictions on safer nicotine alternatives, such as vapes and heat-not-burn products, could impact Welsh individuals trying to quit smoking. The Welsh NHS has invested in smoking cessation programs that promote these alternatives, and some fear that restrictions on these products may reduce access to effective cessation tools, ultimately affecting health outcomes.
Mike Salem, UK Country Associate for the Consumer Choice Center (CCC), reacted to the news: “Whilst it is predictable that the prohibition was going to be introduced, I am extremely concerned and disappointed with how little regard the government has had for consumers’ voices, particularly the young voices.”
The Bill revives an initiative initially proposed by the previous Conservative government before the election, though Labour’s version brings in tougher regulations. The proposal has sparked debates across various groups, with health advocates supporting the measures and others, like the CCC, voicing concerns about potential unintended consequences.
Illicit market worries
The CCC has highlighted fears that prohibitions may fuel an already significant black market for tobacco products in the UK. According to Salem, 2023 saw the highest number of illicit cigarettes consumed in the country, with one in five cigarettes sold illegally. He warns that restrictions risk expanding this underground market.
“It is no surprise that gangs and illegal suppliers are already positioning themselves in this market in anticipation of the prohibition,” Salem said. He cited experiences from other regions, such as the state of Victoria in Australia, where similar prohibitions have led to gang-related violence and exposed children to criminal activities, including arson.
Impact on young people
Critics of the Bill argue that the Labour Party’s approach may negatively impact young people, whom they claim are already disadvantaged by recent policies. “The Labour Party has shown that it is the Party of Boomers, and is letting young people down,” Salem said. He added that recent increases in tuition fees and levies on alcohol and soft drinks, along with tougher employment markets, restrict young people’s lifestyle choices and increase their exposure to illegal markets.
Public health debate
Supporters of the Bill believe these measures are necessary to protect public health. They argue that strict controls on tobacco and nicotine products are crucial steps towards reducing smoking rates, improving long-term health outcomes, and reducing the burden on the NHS. Advocates also believe that limiting youth exposure to nicotine will reduce future smoking rates.
However, Salem argues that the Bill may have the opposite effect. “Not everyone can quit cold turkey,” he said, noting that many people have found success using alternative products like vapes, heat-not-burn devices, and nicotine pouches. “Restricting safer methods of consuming nicotine makes it extremely difficult for those who are trying hard to quit smoking to do so permanently and positively.”
Alternative solutions proposed
The CCC says it is calling on the government to ensure existing laws are enforced first, such as banning nicotine sales to under-18s, before introducing a total prohibition. They argue that failing to do so will lead to worse public health outcomes and put consumers and children in a vulnerable position. The Bill now moves forward for further debate, with both sides urging careful consideration of the potential impacts on public health, youth, and the illicit market.
Crime
Bin lorry driver banned after “squishing” man in road rage incident
RHYS GRIFFITHS, a former bin lorry driver, has been banned from driving after injuring a man by colliding with his car door during a road confrontation on St Issels Avenue, Haverfordwest, on 22 February 2023.
Swansea Crown Court heard from Prosecutor Harry Dickens that Griffiths, 32, accelerated towards the victim’s vehicle, stopping bumper-to-bumper. Following a brief verbal exchange, the victim turned back to his car, only to hear Griffiths rev his engine, mount the kerb, and strike the driver-side door, pinning the man against his own car. Though the victim felt pain in his thighs, he did not require medical attention, and only minor damage was reported to the car.
Griffiths left the scene without stopping, and a witness alerted the police. The victim later told officers: “There was no need for this incident at all.”
Griffiths initially pleaded not guilty to dangerous driving, later changing his plea to guilty on the day of his trial. His defence lawyer, Emily Bennett, expressed Griffiths’ “deep shame” over the incident, noting he had been redeployed from his job as a bin lorry driver due to the offence.
Judge Paul Thomas KC described Griffiths’ actions as “incredibly stupid” and sentenced him to 10 months, suspended for 18 months. Griffiths must complete 100 hours of unpaid work, 25 rehabilitation days, and pay £1,200 in costs due to the lateness of his plea. Additionally, he was disqualified from driving for 12 months and must pass an extended driving test to regain his licence.
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