Missing Trader – Don’t get caught out

Missing Trader – Don’t get penalised due to the actions of others.

Missing Trader – Don’t get penalised because of someone else’s actions.

How to spot missing trader VAT fraud – don’t get caught out because someone else is not paying their VAT. It will have implications for you and your business.

What is missing trader fraud?

Missing trader fraud involves a ‘missing’ or ‘defaulting’ trader who deliberately fails to pay its VAT liability for taxable supplies made in the UK. So If a business is aware but continues to trade with a missing trader your VAT claim maybe denied.

If you are a VAT registered business it is important that you read this information.  If a business fails to take reasonable care and HMRC can demonstrate that the business knew or should have known that its transactions were connected to missing trader fraud, the input tax linked to those transactions can be disallowed.

In determining whether a person knew or should have known, HMRC will consider all

of the circumstances relating to the transaction, including whether the person took

reasonable steps to verify the integrity of the supply chain.

HMRC have produced a guide to helping you protect yourself or your business from organised criminals.

The guide describes the kind of ‘reasonable’ steps that should be taken to check the integrity of suppliers, customers, goods and services and we would strongly recommend that you read this guide and review your suppliers and customers. You can find the guide here.

Haines Watts

If you have concerns regarding any of the above information please get in touch. We work with a wide variety of businesses and offer guidance and support for business owners on a range of issues from VAT to Accounts, Audit, Payroll and Business Advisory.

We don’t shy away from the difficulties of business, we welcome them. Whatever your issue maybe get in touch with us and we will guide you in the right direction. As business owners we share your challenges and issues and welcome the opportunity to work with other business owners to overcome the obstacles and celebrate the successes of life as a business owner.