Is this VAT fraud?

mikethecat1988

Hi all,

We have recently started a car share in work (I work in a local factory), the person who I'm paired with has offered to claim back any VAT that I've paid to builders for an extension for a 'cut' of what's been paid as he's VAT registered, I have declined his offer but can't understand how he is VAT registered as he does the same job as me (we're electricians), he lives with his partner (no kids) who was also employed by HMRC until her retirement last year - neither have any business interests. I have checked and he is indeed VAT registered on the VIES website under his name and home address. Is there any way of finding out what he trades as (he wont tell me as he says now it was all a joke), I don't want to get him in to trouble but am a little intrigued as to what he's up to!

Thanks in advance for any replies... All the best, Mike.

agrinnall

I don't really understand what your interest in it is, other than unnecessary nosiness. There could be many good reasons why he is VAT registered, and not one of them is any of your business.

Pennywise

Just report him

https://www.gov.uk/report-vat-fraud

What he was suggesting IS fraud, so whether he's legitimately registered or not, he's almost certainly defrauding the taxpayer in other ways.

MoneyMission2015

Maybe he does other work outside of his normal job so is VAT registered for this reason. Or maybe he used to be self employed and just hasn't deregistered. You were right not to go along with his idea though.

Pennywise

MoneyMission2015 wrote: »

Maybe he does other work outside of his normal job so is VAT registered for this reason. Or maybe he used to be self employed and just hasn't deregistered. You were right not to go along with his idea though.

Whether he's legitimately registered or not, it IS fraud to claim VAT on other people's invoices as was being suggested. If he's suggested it to one person, he'll have done it with others. He needs to be reported. VAT fraud is the biggest component of the multi-billion pound "tax gap". If he's doing nothing wrong, then any investigation will be over and done with very quickly.

MoneyMission2015

Pennywise wrote: »

Whether he's legitimately registered or not, it IS fraud to claim VAT on other people's invoices as was being suggested. If he's suggested it to one person, he'll have done it with others. He needs to be reported. VAT fraud is the biggest component of the multi-billion pound "tax gap". If he's doing nothing wrong, then any investigation will be over and done with very quickly.

Hence why I said that OP was right not to go along with what his colleague was suggesting. I was merely answering the OP's question as to how he could be VAT registered.