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23 Nov 2022

Every year, the UK government loses billions of pounds to tax fraud. This money could be used to fund vital public services, but instead, it is stolen by criminals who take advantage of the system. In this article, we will look at what tax fraud is, how to avoid getting caught up in it, and the consequences of being convicted. We will also explore how our team at ABV Solicitors can help you.

At ABV Solicitors, we believe everyone has the right to legal defence and when you come to see our fraud solicitor, we will always aim to ensure that any sentence or punishment you are set to receive is minimal, helping you and your business to get back on track.

Here, our fraud solicitor breaks down what tax fraud is, how to prevent it and how we can help if you find yourself accused of it.

What is tax fraud?

According to our fraud solicitor, tax fraud is the deliberate avoidance of paying tax that is due, either by individuals, businesses, or other organisations. It can include activities such as under-reporting income, claiming false deductions, or smuggling goods into or out of a country. Tax fraud is a criminal offence and can result in heavy fines and even imprisonment.

So, if you are accused of it, you will need to call our team!

Failing to declare income

There are a few different types of tax fraud in the UK that you should be aware of to avoid getting caught up in it. The first type is failing to declare income or capital gains. This can include not declaring income from a self-employment business, as well as income from investments or property. This is the type that is most commonly the result of human error on tax returns, but it carries a heavy penalty nonetheless.

Claiming excessive expenses

Claiming excessive expenses includes things like falsely claiming for travel or subsistence expenses, or for goods and services that you haven’t purchased. This is less likely to be accidental and can carry heavier legal consequences.

VAT Fraud

The third type is VAT fraud. This can involve falsely claiming a lower rate of VAT than you are due, or creating fake invoices to claim back VAT that you haven’t paid.

How to avoid tax fraud

When it comes to avoiding tax fraud in the UK, there are a few key things to keep in mind. The first thing to remember is that tax fraud can take many different forms, from under-reporting income or expenses, to claiming bogus deductions, to outright tax evasion. So it’s important to be aware of the various scams and schemes that HMRC (the UK’s tax authority) is on the lookout for.

Another thing to keep in mind is that even if you don’t technically commit tax fraud, you can still be held liable for taxes owed if you’re found to have been negligent in your bookkeeping or record-keeping. So it’s important to keep good records and be aware of what you can and can’t claim as a deduction.

If you are accused of tax fraud, be sure to call our team ASAP!