How did he do it?Imponge faked invoices in the name of his different companies to hugely inflate? his expenses, according to HMRC, and claim VAT repayments. Read more HMRC content:
- HMRC attempts to shut down small businesses reach five-year high
- HMRC looks to small businesses to plug tax gap
- HMRC risks vilifying small business owners
What is invoice fraud?Imponge’s VAT scam attempted to defraud the tax office, but the threat of invoice fraud to micro business owners is increasing. False invoices could be submitted by third parties impersonating genuine suppliers, or even employees in some cases, in an attempt to deceive firms into making payments to fraudulent accounts. Procurement fraud costs UK businesses 121.4bn every year, and fraudsters are becoming increasingly sophisticated. We asked two experts what tactics business owners need to be aware of.
HMRC comes down hard on small business scamsImponge has become the latest small trader to face jail time after forging fake invoices. A separate investigation by HMRC recently revealed that a clothing wholesaler from Rochdale had created templates from legitimate supplier invoices, which he then used to create fake sales and purchase documents. After claiming almost 120, 000 in repayments, the trader received a two-year suspended jail sentence, 150 hours community service and a compensation order of 70, 271. Meanwhile, a pair of London-based brothers were jailed last week for more than 12 years after evading 3.6m in tax by distributing smuggled alcohol. __________________________________________________________________________________
When your boss sends a suspicious email, what do you do? Impersonation fraudster exposed Are small businesses really prepared for a well-executed scam? When we received a suspicious email, we wanted to see how far we could take the scam. __________________________________________________________________________________
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