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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.

 

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Starmer battles to survive as revolt inside Labour deepens

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Seventy MPs now calling for Prime Minister to quit or set departure timetable after disastrous election losses

SIR Keir Starmer’s premiership was hanging by a thread on Monday night as a growing rebellion inside Labour threatened to spiral into a full leadership crisis just hours after his major “reset” speech.

The Prime Minister had attempted to relaunch his government with a high-stakes address in London following Labour’s disastrous election results across the UK.

But instead of calming unrest inside the party, pressure on Starmer intensified dramatically throughout the day.

By Monday evening, the BBC reported that 70 Labour MPs had now publicly called for Starmer either to resign immediately or set out a timetable for his departure.

The number rose steadily throughout the afternoon and evening following the speech, with several ministerial aides resigning from government positions and openly declaring they had lost confidence in the Prime Minister.

Leadership crisis deepens

Starmer used the speech to admit Labour had “made mistakes” and acknowledged that the election results had been “tough, very tough”.

He insisted he would not resign and pledged to fight any leadership challenge.

The Prime Minister said: “I know I have my doubters, and I know I need to prove them wrong, and I will.”

Asked directly whether he would stand aside, Starmer replied: “I’m not going to walk away.”

The speech had been billed as a make-or-break moment for his premiership, with growing numbers of Labour MPs openly questioning whether he could recover politically after the party’s heavy losses.

Instead, the situation appeared to worsen.

BBC political correspondents described the Prime Minister as being in a “very vulnerable” position, with some MPs now openly discussing whether his premiership is becoming unsustainable.

Government aides quit

The most damaging developments came later in the day as parliamentary private secretaries — junior government aides often seen as future ministers — began resigning.

Tom Rutland became the first government aide to quit, saying he no longer had faith in Starmer’s leadership and calling on the Prime Minister to set out a timetable for departure.

Joe Morris, parliamentary private secretary to Health Secretary Wes Streeting, also resigned, saying Starmer no longer had “the trust or confidence of the public”.

Naushabah Khan later resigned as parliamentary private secretary to the Cabinet Office while calling for “new leadership”.

Melanie Ward also quit her role as parliamentary private secretary to Foreign Secretary David Lammy.

Several MPs warned privately that more resignations could follow if Starmer refuses to stand down.

The growing revolt now appears to span multiple factions within Labour, including MPs linked both to the left of the party and to senior figures on the party’s more centrist wing.

Three key pledges

Earlier in the day, Starmer had attempted to reset his leadership by announcing a series of major policy pledges.

The Prime Minister promised a closer relationship with Europe, saying the next EU summit would mark a “new direction for Britain” and place the country “at the heart of Europe” once again on trade, defence and economic cooperation.

He also announced plans for a major youth opportunity scheme allowing young people to work, study and live in Europe more easily.

Starmer pledged further investment in apprenticeships, technical colleges and special educational needs provision, alongside a guarantee that every young person struggling to find work would receive a job, training place or work placement.

The biggest announcement centred on steel.

Starmer confirmed legislation would be introduced this week to allow the government to take full ownership of British Steel, subject to a public interest test.

The move follows government intervention to protect the Scunthorpe steelworks after concerns over its Chinese owner Jingye.

Wales criticism grows

In Wales, however, the speech triggered immediate criticism.

Opponents accused Starmer of failing to address Welsh Labour’s historic collapse in last week’s Senedd election and pointed out that Wales was barely mentioned during the speech itself.

Welsh Liberal Democrat Westminster spokesperson David Chadwick MP accused Labour of becoming “out of touch” with Welsh communities.

He said the Prime Minister had failed to offer “the fresh thinking people are crying out for”.

The British Steel announcement also reignited anger over the handling of the Tata Steel crisis at Port Talbot.

Critics contrasted the move to potentially nationalise British Steel in Scunthorpe with the lack of full government intervention for Port Talbot workers and communities during the closure of the blast furnaces.

The issue is likely to become increasingly politically sensitive in Wales, particularly following Labour’s severe election losses.

Mounting danger

Despite the growing revolt, senior Labour figures continued rallying behind the Prime Minister on Monday evening.

Housing Secretary Steve Reed said the “quiet majority” of Labour MPs still supported Starmer and warned against creating a “revolving door of leaders”.

Labour chair Anna Turley also publicly backed the Prime Minister, saying she was “proud” of his leadership.

But BBC political editors reported that the pressure on Starmer was now intensifying by the hour.

Some MPs are believed to be pushing for a rapid leadership contest, while others are reportedly trying to buy time for Greater Manchester Mayor Andy Burnham to return to Westminster and potentially contest the leadership.

Other names being discussed include Health Secretary Wes Streeting and Deputy Prime Minister Angela Rayner.

The Prime Minister insisted during the speech that Labour had to prevent Britain going down what he described as a “dark path” and warned against “division” and “grievance politics”.

But by Monday night, the biggest political battle appeared to be inside Labour itself.

For Starmer, the speech was meant to draw a line under Labour’s election disaster.

Instead, it may have accelerated the crisis threatening to end his premiership.

 

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Health

NHS Wales users share mental health support stories

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Two Welsh patients say free online programmes helped them manage anxiety and stress

TWO people who transformed their mental wellbeing with the help of NHS Wales’ online support services are encouraging others to seek help during Mental Health Awareness Week.

Kate, 39, from Cardiff, and George Ryley, 27, from Aberystwyth, both say free online self-help programmes helped them regain control during difficult periods in their lives.

The pair were supported through SilverCloud Wales, a suite of digital mental health programmes based on Cognitive Behavioural Therapy, managed by Powys Teaching Health Board.

The stories are being highlighted as part of Mental Health Awareness Week, which this year focuses on the theme of “Action”.

Parental anxiety

Kate sought help after her young son began suffering febrile seizures, triggering severe anxiety that quickly escalated.

“My chest would tighten and I’d get this feeling like a wave of nausea,” she said. “I couldn’t eat, couldn’t focus.”

She described becoming consumed by fear, constantly checking on her son and worrying about possible seizure triggers.

“I was so distracted at work that I had to stay behind after hours, and at home I didn’t feel I was always present with my son in the right way,” she said.

After speaking with her GP, Kate was diagnosed with parental anxiety and referred to SilverCloud’s “Space from Anxiety” programme.

She said the flexibility of the online course made it easier to fit around family life.

“I could do it in the evening when my son had gone to sleep, or during breaks in the day. It worked around me,” she said.

Kate says she still regularly uses mindfulness, breathing exercises and writing techniques she learned through the programme.

“I haven’t had a single anxiety attack since I started it,” she added. “I’ve not looked back.”

Stress and illness

Meanwhile, Aberystwyth resident George Ryley turned to the service after work pressures and illness left him physically and mentally exhausted.

“I was used to being busy and active,” he said. “Then suddenly, even having a shower would sap all my energy for the day.”

George said a period of poor health linked to mould toxicity left him bed-bound for several weeks and badly affected his mental wellbeing.

After contacting his GP, he was referred for counselling and encouraged to try SilverCloud’s “Space from Stress” programme.

“I didn’t have the most positive mindset at first,” he said. “But as I worked through it, I was amazed at how effective it was.”

Each SilverCloud user is assigned a dedicated supporter who provides encouragement and advice throughout the course.

“Having such lovely feedback on my progress was really motivating,” George said.

“I’ve recommended SilverCloud to so many people who I know have been struggling with stress.”

Taking the first step

Fionnuala Clayton, project manager for NHS Wales’ Online CBT Service, said the stories showed how small actions could make a major difference.

“This Mental Health Awareness Week reminds us that action doesn’t have to be dramatic or overwhelming – sometimes it’s simply about taking that first step to seek support,” she said.

“SilverCloud Wales gives people the tools to understand their thoughts, manage anxiety and stress, and build resilience in a way that fits around busy working and family lives.”

SilverCloud Wales is free to access through NHS Wales and can be used on phones, tablets or laptops.

The service is not intended as a crisis support platform or for those requiring high levels of intervention.

People can sign up at nhswales.silvercloudhealth.com/signup.

 

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Community

Fishguard RNLI volunteers respond after yacht runs aground

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SOLO SAILOR HELPED TO SAFETY BY COASTGUARD CREWS

FISHGUARD RNLI volunteers were paged on Saturday evening (May 9) after a 26ft yacht broke free from its mooring and ran aground near Fishguard Lower Town quay.

The charity’s D-class inshore lifeboat, Edward Arthur Richardson, was launched at 7:56pm following a request from HM Coastguard.

Information received was that the yacht, with one person on board, had grounded on the seaward side of the quay.

When the lifeboat arrived, the helm assessed the situation and sea conditions. Swells were lifting the yacht before dropping it back onto rocks below the surface.

Because of the yacht’s position and the weather conditions, it was decided that the safest way to assist the sailor was from the shore. Fishguard Coastguard officers, who were already on the quay side, helped the casualty from the vessel and back up the steps on the quay wall.

The lifeboat remained on standby while coastguard crews assessed the situation. During that time, the helm kept the inshore lifeboat facing into the conditions to ensure the safety of those on board.

Once it was confirmed that the sailor, members of the public and coastguard officers were safely away from the water, the lifeboat was stood down and returned to station.

‘Not viable to tow’

Fishguard RNLI volunteer Lifeboat Press Officer, Cedwyn Rogers said: “Fishguard’s volunteer crew responded to a request from HM Coastguard to attend a yacht with one person on board that was being pushed onto rocks by the weather.

“Once on scene, the helm made an assessment and it was determined that, given the proximity to the quay and accessibility of the casualty vessel from shore, the most appropriate way in which to preserve life was for the casualty to be assisted from the yacht by coastguards.

“With the vessel already aground and the nature of the surf due to the northerly winds, it was not viable to attempt a tow without presenting further unnecessary risks to the lifeboat crew and casualty.

“Once a vessel has grounded, the structural integrity and stability of a vessel is unknown, and to tow it off could compromise that further. In these situations, other means of assisting a casualty will be utilised.

“With the casualty sailor safe with HM Coastguard and no further persons near the water’s edge, the lifeboat returned to station.”

The RNLI added that anyone who is in trouble at sea, or who believes someone else may be in difficulty, should call 999 or 112 and ask for the Coastguard.

Pic: RNLI/Rhodri Pugh-Dungey.

 

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