News

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

Published

3 years ago

May 20, 2023

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

Mental health waits hit post-pandemic high

Published

26 minutes ago

July 5, 2026

Tom Sinclair

More than 9,000 people in Wales are waiting for specialist psychological therapies, with almost half waiting longer than six months

MORE than 9,000 people with moderate to severe mental health conditions are waiting to access specialist psychological therapies in Wales, according to new figures obtained by Mind Cymru.

The charity says the number of people waiting for treatment is now at its highest level since the Covid-19 pandemic.

Freedom of Information data gathered from all seven local health boards shows that, as of December 2025, almost half of those waiting, around 47%, had been on the list for longer than 26 weeks.

Mind Cymru said more than 4,300 people had been waiting more than six and a half months for specialist psychological therapies by December 2025.

That figure has almost doubled since March 2024, when 2,305 people were waiting more than 26 weeks.

The charity is now calling on the Welsh Government to make mental health a priority during the next Senedd term, with a focus on reducing waiting times and improving early access to support.

Aled Edwards, from Bangor, said he was told he faced a two-year wait to see a psychologist as an outpatient at a mental health hospital near his home, despite experiencing depression and suicidal thoughts.

The father-of-two was instead placed on a list to see a psychiatrist in the hope he could access support more quickly, but said it still took another 18 months before he finally received the help he needed.

Aled, who was later diagnosed with a male form of post-natal depression, said: “This was at a point in my life where I had already tried to take my own life and I was considering trying again, so this time I went to ask for help instead.

“I was experiencing some really dark thoughts and I was desperate for support.

“When I did get to see a psychiatrist, they left their job after three sessions and I went back into the system to wait for a further six months before starting trauma therapy with another doctor.

“Finding the skills to cope with the kind of intrusive thoughts I was having in the meantime was really hard, and I feel fortunate that I had the means to access private counselling support to keep me going during that period, where so many others might not.”

Mind Cymru has requested the same waiting list data from local health boards three times since 2020, as part of its campaign for improved access to specialist psychological therapies in Wales.

Its original Too Long To Wait report called for more investment in specialist psychological therapies, stronger governance around how local health boards collect and submit waiting time data, and for the figures to be made publicly available.

The charity says those recommendations remain relevant, but that urgent action is now also needed to transform the mental health system so people can access support earlier.

Simon Jones, Head of Policy and Campaigns at Mind Cymru, said the findings showed that mental health must be a central priority for the Welsh Government.

He said: “There’s clearly a very real and growing need for increasing numbers of people to receive specialist psychological support for their mental health in Wales.

“These are people living with moderate, severe and enduring mental health conditions, and those most in need of support.

“That so many are waiting too long to access therapies is placing further demand on a system already under pressure, and there’s a need for significant investment to be made at all levels to help people access the support they need, when they need it.

“With plans already in place to transform Wales’ mental health system and help deliver open access care, we need now to ensure these plans are prioritised and invested in so that we can start to see that positive impact as soon as possible.

“No one should be waiting longer than six months for support with a serious mental health issue. With this in mind, Mind Cymru is calling on the new Welsh Government to make mental health a priority across the next Senedd term.”

Specialist psychological therapies are structured, evidence-based treatments delivered by trained clinicians for specific mental health conditions or complex psychological needs.

They include therapies such as Cognitive Behavioural Therapy, Eye Movement Desensitisation and Reprocessing, Cognitive Analytic Therapy and Dynamic Interpersonal Therapy.

Crime

Man in critical condition after serious assault in New Quay

Published

16 hours ago

July 4, 2026

Tom Sinclair

A 20-YEAR-OLD man remains in a critical condition in hospital after being seriously assaulted in New Quay.

Dyfed-Powys Police said the incident happened at around 12:51am on Saturday (July 4) in Margaret Street, leading to Uplands Square.

The victim suffered serious, life-threatening injuries and was taken to hospital, where he remains in a critical condition.

A 37-year-old man has been arrested on suspicion of grievous bodily harm and remains in police custody.

Police said enquiries are progressing, led by CID and the Major Crime Team. A visible police presence is expected to remain in the area over the coming days.

Officers are appealing for witnesses, or anyone with information, to come forward.

Anyone who can help is asked to contact Dyfed-Powys Police online, by emailing [email protected], by direct message on social media, or by calling 101.

Quote reference: DP-20260704-028.

Community

Kilgetty and Begelly tractor run raises funds for local charities

Published

18 hours ago

July 4, 2026

Tom Sinclair

Around 70 tractors joined the annual charity road run, hosted by the Begelly Arms Hotel

THE ANNUAL Kilgetty and Begelly Charity Tractor Run brought a colourful convoy to the roads around the Narberth area on Saturday (Jul 4), with around 70 tractors taking part.

The event was hosted by the Begelly Arms Hotel, where farmers, families and supporters gathered before the start of the run.

Entrants were treated to bacon rolls and coffee by the hosts before setting off, while many families took the opportunity to pose for photographs alongside the tractors.

The road run once again proved to be a popular community event, bringing together local farmers, vintage tractor enthusiasts and supporters for a good cause.

The sight of dozens of tractors heading out together made an impressive display as the convoy travelled through the local area.

Organisers said local charities are set to benefit from money raised at the event.

The annual run has become a well-supported fixture in the local calendar, with farming families turning out in force to take part and support the fundraising effort.

For further information, contact Peter Adams at the Begelly Arms on 01834 812601.

Pictures: Malcolm Richards