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‘I received 6,000 letters from HRMC – all Chinese companies registering for VAT’

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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.

 

News

Prince William faces diplomatic tightrope on first Saudi Arabia visit

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Energy, trade and human rights concerns collide as UK deploys monarchy’s ‘soft power’

PRINCE WILLIAM will step into one of the most politically sensitive overseas trips of his public life this week as he travels to Saudi Arabia at the request of the UK Government.

Unlike recent royal visits to Estonia, Poland or South Africa, this tour carries significant diplomatic weight, placing the Prince of Wales at the centre of a complex balancing act between strengthening economic ties and confronting a deeply controversial human rights record.

Sources close to the Palace say William “didn’t flinch” when asked to go, viewing such duties as part of his responsibility as heir to the throne.

But Saudi Arabia presents challenges unlike almost anywhere else on the royal calendar.

A country in transition

The visit will focus on energy transition and young people, two areas the kingdom is promoting heavily as it attempts to diversify its oil-dependent economy.

In recent years Saudi Arabia has staged major sporting and cultural events, including Formula One races, international film festivals and high-profile entertainment shows. The country will also host the men’s football World Cup in 2034.

Officials argue this signals modernisation and openness.

Critics say it is “sportswashing” — using global events to distract from repression.

Human rights organisations including Amnesty International continue to raise concerns over restrictions on free speech, criminalisation of same-sex relationships and harsh penalties for dissent.

While reforms have allowed women to drive and increased participation in public life, significant legal and social limits remain.

Meeting a controversial leader

Central to the trip will be talks with Mohammed bin Salman, widely known as MBS, the kingdom’s de facto ruler.

The crown prince is credited with pushing economic reforms but remains internationally divisive.

A US intelligence report concluded he approved the 2018 killing of journalist Jamal Khashoggi inside the Saudi consulate in Istanbul — an allegation he denies and Saudi Arabia rejects.

Whether William raises such issues privately is unlikely to be disclosed. Kensington Palace does not comment on confidential conversations.

However, the prince will be briefed extensively by the Foreign Office and the British Embassy before any meetings.

Soft power diplomacy

Government insiders describe William as a key diplomatic asset.

One source said the monarchy acts as a “secret weapon”, able to open doors politicians sometimes cannot.

This form of so-called soft power has long been part of the Royal Family’s overseas role — building relationships first, leaving governments to handle the harder negotiations.

Dr Neil Quilliam of Chatham House says Saudi leaders value high-level recognition from Britain.

“Deploying Prince William sends a signal that the UK takes the relationship seriously,” he said.

Energy cooperation and investment are expected to dominate talks, particularly as Britain seeks new partners during the global shift away from fossil fuels.

Echoes of the past

The visit also reflects longstanding links between the two royal families.

King Charles III has travelled to Saudi Arabia numerous times over the decades and is said to maintain warm relations with senior figures there.

William is now expected to assume a more prominent global role as he prepares for future kingship.

A delicate balancing act

For many observers, images of handshakes between William and MBS will be uncomfortable.

Yet world leaders continue to engage with Riyadh, citing its strategic and economic importance.

The prince’s task is unlikely to involve grand statements. Instead, it will be quiet diplomacy — maintaining dialogue while representing British values.

It is a careful, sometimes uneasy role.

But it is one the monarchy has long performed: building bridges in places where politics alone struggles to tread.

 

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Community

Ice rink campaign launched for Pembrokeshire

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Survey underway as resident explores sites and funding for year-round skating facility

PLANS to bring a permanent ice skating rink to Pembrokeshire are gathering momentum after a local resident began talks with council officers and launched a public survey to test demand.

Big plans: Jemma Davies

Jemma Davies, from Newgale, says the county is missing out on a major leisure attraction that could benefit families, schools and visitors while creating new jobs.

At present, the nearest full-time rink for Pembrokeshire residents is in Cardiff — a round trip of several hours — making regular skating sessions difficult for many families.

She believes a local facility could change that.

“I think it would give people something completely different to do here,” she said. “It’s exercise, it’s social, and it’s something children could take up after school instead of having to travel out of the county.”

Early talks with council

Jemma has already met officers from Pembrokeshire County Council’s sport and recreation department to discuss whether the idea could be viable.

She is also hoping to approach Sport Wales to explore possible funding streams and support.

To measure interest, she has set up an online questionnaire asking residents whether they would use an ice rink and how far they would be willing to travel.

She said early responses have been positive, with families, young people and skating enthusiasts backing the idea.

Reusing empty buildings

Rather than constructing a new arena, Jemma is investigating whether vacant premises could be converted, reducing costs.

Potential options include a former retail unit in Haverfordwest or a large hangar-style building near existing leisure attractions.

She said: “If we can reuse a building that’s already there, it keeps the costs down and brings life back into empty spaces at the same time.”

As part of her research, she plans to visit Vindico Arena to better understand the practicalities of running a rink.

More than just skating

Beyond public sessions, she believes a rink could host school trips, birthday parties, events and competitions, while encouraging young people to take up winter sports.

“Pembrokeshire has produced plenty of sporting talent over the years,” she said. “There’s no reason we couldn’t develop figure skaters or ice hockey players here too.”

Residents who want to share their views can complete the online survey.

Cover image:

Jemma Davies: Hopes to bring a permanent ice rink to Pembrokeshire (Pic: Supplied).

 

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Cymraeg

Moonpig’s Welsh fail still on sale as mistranslated St David’s Day card sparks laughs

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A GREETING card meant to celebrate St David’s Day has become an accidental comedy hit after shoppers spotted its Welsh message makes absolutely no sense – and, even better, it is still on sale.

The card, sold by online retailer Moonpig, reads: “Hapus Dewi Sant Dydd.”

Unfortunately for the designers, that translates back into something closer to “Happy David Saint Day” or “Day Saint David Happy” rather than the correct Welsh phrase, “Dydd Dewi Sant Hapus.”

In other words, the words are right – just in completely the wrong order.

The mistake was first highlighted by Nation.Cymru, prompting plenty of amusement online, with some joking it looked like the result of a lazy copy-and-paste from an automatic translator.

The Herald decided to check for itself.

And yes – as of today – the card is still live and available to buy on Moonpig’s website.

Customers can personalise it and add it to their basket just like any other design, with no sign the message has been corrected.

One reader joked: “It’s like they put the words in a hat and picked them out at random.”

Another described it as “peak AI Welsh”.

For Welsh speakers, the error is immediately obvious. Welsh sentence structure differs from English, so simply translating each word individually rarely works. It’s the linguistic equivalent of writing “Birthday happy you” on a cake.

There was also online chatter that the dragon artwork may be facing the wrong direction – though by that point, the language had already stolen the show.

With St David’s Day cards meant to celebrate Welsh culture, the gaffe feels particularly ironic.

Still, if you fancy a collector’s item or a bit of office wall décor, you might want to be quick. Once someone at Moonpig finally runs it past an actual Welsh person, this one could quietly disappear.

Photo caption: The mistranslated St David’s Day card still available for sale on the Moonpig website (Pic: Moonpig).

 

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