Recommendation 9

We asked HMRC about a taxpayer who has received more than 10,000 letters from HMRC in relation to companies registered incorrectly at his address. HMRC told us it has investigated and found a foreign agent acting on behalf of overseas companies had incorrectly registered those companies for VAT at the taxpayer’s address rather than a serviced office that shared the same postcode. HMRC told us it had found no evidence of an attempt to defraud HMRC and that the incorrect registrations were a “bizarre accident”.28 HMRC said that these overseas businesses do not always understand their obligations.29 However, Borderfree Trade Limited told us HMRC’s guidance is often 20 Qq 45–46; C&AG’s Report, para 1.14 21 Qq 46, 48 22 Qq 52–53 23 Q 86; C&AG’s Report, para 1.43 24 HMRCSR0003 David Dibbens 25 Q 36 26 C&AG’s Report, para 1.17 27 Q 43 28 Q 16 29 Q 19 HMRC performance in 2022–23 11 contradictory and sometimes incorrect.30 HMRC described some of the ways it is seeking to educate overseas companies further, including through providing Mandarin language guidance and having a liaison officer in Beijing.31