Payroll services company tops HMRC defaulters list owing £12m

An online electrical goods seller based in China and a payroll services company from London top the latest HMRC of tax defaulters, while takeaway owners, dog breeders and IT consultants are among others to be named and shamed

Dan Li, described as an online seller of electrical products with addresses in China and Hong Kong, owed £4.3m of tax and/or duties between December 2013 and April 2017, and has paid £2.6m in penalties.

Universal Project Services Ltd and Universal Payroll Services Ltd, both described as payroll services companies and sharing the same address in Stratford, east London, were said to have failed to pay almost £20m in tax between 2010 and 2014. Both companies have been given penalties totalling £11.8m.

HMR’s quarterly listing of deliberate tax defaulters’ details adds well over 100 names to the list of those who have received penalties either for deliberate errors in tax returns or for failing to comply with tax obligations. It covers those tax evaders whose penalties involve unpaid tax of more than £25,000.

The list shows evidence of the fruit of recent HMRC targeted campaigns. There are a number of overseas online sellers, such as Seeblue from China, which failed to pay £118,00 of tax and has paid £82,000 in penalties as a result. Another Chinese trader, known as Channing56789, owed £325,000 in tax and has paid a penalty of £220,000. Xpress Beauty, a US-based online marketplace seller, has paid a £272,000 penalty on some £421,000 owing.

A Chinese takeaway in Wales paid £249,000 relating to an original non-payment of £276,000, while a fast food shop in Liverpool saw £85,000 of penalties on £90,000 owing. Nadeem Faruq from Luton, trading as Karam Express, failed to pay ££412,944 over a seven-year period, attracting a penalty of £309,706.

Partnership Griggs, described as a dog breeder, owed £63,369 and paid a penalty of £27,732. Paul Davie from Edinburgh, listed as a tax consultant, paid a penalty of £23,039, for monies of £32,913 owing from 2012 to 2016.

Otis Roberts, a sports agent, and sports agency called OPR Sports Management, received penalties totalling £100,000. IT consultant Alan Farrell, from Reading, was found to have failed to pay £78,134, with a penalty of £35,551.

The current list of deliberate tax defaulters is here

Report by Pat Sweet

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