Businessman hit with £38,000 bill for tax breach

Carl Lowe, whose premises are on Ashton’s South Lancs Industrial Estate, was accused of “supplying goods or services in contravention of conditions requiring you to give a security for the payment of any VAT which was or may have become due to you.”

HMRC can require firms to pay a deposit, or security, where there is a serious risk that the tax will not be paid based on their history. It is a criminal offence to continue trading in taxable goods and/or services without paying the security under the Value Added Tax Act of 1994.

The 48-year-old did not attend Wigan Magistrates’ Court but the case was proved in his absence and he was fined £20,000 and ordered to pay £18,275 compensation and a £181 surcharge by December 27 next year.