This broker added value . . .

[Searush]

About 20% of clients' money into his pockets.

Clicky me for details

 

[PaulGooch]

About 20% of clients' money into his pockets.

Clicky me for details

Not quite right. It wasn't clients money it was the VAT he should have paid to HMRC. Wasn't on brokerage sales either, was on stock boats.

 

[Searush]

Not quite right. It wasn't clients money it was the VAT he should have paid to HMRC. Wasn't on brokerage sales either, was on stock boats.

But it was paid by customers wasn't it? HMRC never even saw it. I wonder if he gave VAT receipts?

I did realise he wasn't "broking" after I posted, but initially simply accepted the reporter's statement - mea culpa!

 

[Tranona]

But it was paid by customers wasn't it? HMRC never even saw it. I wonder if he gave VAT receipts?

I did realise he wasn't "broking" after I posted, but initially simply accepted the reporter's statement - mea culpa!

Difficult to see from the reports how the scam actually worked. He was selling boats to UK customers and charging them VAT, so they will have a VAT receipt and have not committed any offence. Seems like he was getting boats from the Builder without VAT as exports to CI, charging VAT to the customers and pocketing the money. The case illustrates that the whole VAT business depends on the trader keeping records, as anyone knows who runs a VAT registered business. What surprises me is how and why he thought he would not get caught!

 

[Searush]

Difficult to see from the reports how the scam actually worked. He was selling boats to UK customers and charging them VAT, so they will have a VAT receipt and have not committed any offence. Seems like he was getting boats from the Builder without VAT as exports to CI, charging VAT to the customers and pocketing the money. The case illustrates that the whole VAT business depends on the trader keeping records, as anyone knows who runs a VAT registered business. What surprises me is how and why he thought he would not get caught!

I suspect he never actually thought about it much, he just thought that the HMCR wouldn't have the time or manpower to check his records. But the sums of money passing thro his bank would probably have got him noticed & that would lead to a clerk spending a few hours checking him out. It wouldn't take them long to suss the scam.

 

[DAKA]

Which Yacht Brokers was he a director of , all I could find was a little snippet indicating a Brokerage operating from Weymouth Marina

 

[DAKA]

deleted as not wishing to implicate a current Brokerage.

 

[Tranona]

Which Yacht Brokers was he a director of , all I could find was a little snippet indicating a Brokerage operating from Weymouth Marina

No, I think he traded as something like Fairline Channel Islands and seem to recall he had a portakabin in Cobbs Quay. Nothing to do with Seakers AFAIK.

 

[Tranona]

I suspect he never actually thought about it much, he just thought that the HMCR wouldn't have the time or manpower to check his records. But the sums of money passing thro his bank would probably have got him noticed & that would lead to a clerk spending a few hours checking him out. It wouldn't take them long to suss the scam.

Difficult to escape the attention of HMRC if you are submitting returns with a high level of input and virtually no output, which is what he did. Can of course be quite legitimate, but would still lead to an early VAT inspection. Understand there were 6 boats involved, so not difficult to see how the VAT could run into £000's.

 

[Rosentiler]

Was it Seakers ?

Looks like he was involvedwith a company called Seakers, coincidence?

 

[DAKA]

No, I think he traded as something like Fairline Channel Islands and seem to recall he had a portakabin in Cobbs Quay. Nothing to do with Seakers AFAIK.

Thank Tranona,
I have deleted the post.

(link came from here here )