Businessman hit with £38,000 bill for tax breach

A businessman has been ordered to pay £38,456 for a tax breach.
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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.

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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.