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Too trusting

14 February 2012
Issue: 4341 / Categories: Tax cases , VAT
J L Eydmann (TC1569)

The taxpayer was employed by her father in his kitchen business Maelstrom on a full-time PAYE basis.

In late 2006 customer Mr Bradbury moved to Spain and set up a kitchen firm buying cupboard carcases from Maelstrom.

In December of that year the taxpayer’s father and Mr Bradbury decided the taxpayer should go into business on her own. Mr Bradbury would submit his orders to her and she would process the order obtain the necessary goods from Maelstrom and supply them to Mr Bradbury.

The taxpayer’s business ceased trading in August 2008 but she had used an invalid VAT number on her invoices meaning when Mr Bradbury’s business was closed down the taxpayer was left with unpaid invoices totalling almost £38 000.

She believed she was a victim of a deliberate fraud by Mr Bradbury. She and her father...

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