London Daily

Focus on the big picture.
Monday, Jan 26, 2026

Cardiff flat owner gets tax bills for 11,000 Chinese firms

Cardiff flat owner gets tax bills for 11,000 Chinese firms

When Dylan Davies went to check his post last November, 580 brown envelopes fell to the floor.

Over next six months he got tax bills for 11,000 Chinese companies after they fraudulently used his Cardiff address to register for VAT.

"It's been horrendous," said Mr Davies, who got letters from HM Revenue & Customs (HMRC) demanding tax amounting to £500,000.

HMRC admitted the situation did not raise alarm bells at the tax office.

"You'd think there'd be a systems with the technology today that would have picked it up immediately," Mr Davies said.

He told the police and HMRC but the brown letters just kept coming.

When letters from debt collection agencies started to arrive, he got even more worried that bailiffs may come "charging the door down" and feared that the amount of money involved meant his property could be taken.

Dylan Davies "couldn't believe" the number of brown envelopes coming each week


He said HRMC only started to take notice when he took his concerns to BBC Wales consumer programme X-Ray.

The head of HMRC admitted the problem in a letter to the Commons public accounts committee.

Permanent secretary Jim Harra said: "2,356 of the businesses have a tax debt and we have acted to prevent any further contact with this address in relation to these debts."

Mr Harra said investigations had "so far have found no evidence of fraud or fraudulent intent" and 70% of the businesses registered to Mr Davies's address operated in online marketplaces.

The law changed in Jan 2021, meaning online marketplaces such as Amazon or eBay must collect VAT from overseas traders and pay it to HMRC.

But if a company has a UK address for VAT, which it does not have to provide proof of, it is responsible for the payment.

Financial crime consultant Graham Barrow said he suspected fraudulent activity from the overseas companies.

"It looks to all intents and purposes like VAT fraud," he said.

"There's no other reason why you'd register for VAT at a complete stranger's address, particularly for 11,000 companies to do that."

He believes the firms are collecting VAT from their buyers, but not paying it to HMRC.

The bills coming to Mr Davies's flat were probably tax fraud, says financial crime consultant Graham Barrow


Mr Barrow said it "beggared belief" that HMRC did not notice the number of companies being registered for VAT at Mr Davies's flat.

He said the consequences for an individual could be severe, through no fault of their own.

"You could find that there are large numbers of county court judgements being registered to your address," he said.

Mr Davies said HMRC needed to "tighten up completely", claiming it was easier to "register a company for VAT than it is to go and get a bus pass".

HMRC said: "We are reviewing our operational processes for managing high volume address changes, including understanding any vulnerabilities in our systems associated with this behaviour."

Newsletter

Related Articles

0:00
0:00
Close
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Inside the Greenland Annexation Scare: How a NATO Ally Dispute Turned Into a Global Stress Test
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
BlackRock Executive Rick Rieder Emerges as Leading Contender to Succeed Jerome Powell as Fed Chair
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
FBI and U.S. prosecutors vs Ryan Wedding’s transnational cocaine-smuggling network: the fight over witness-killing and cross-border enforcement
Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line
Apple and OpenAI Chase Screenless AI Wearables as the Post-iPhone Interface Battle Heats Up
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
OpenAI’s Money Problem: Explosive Growth, Even Faster Costs, and a Race to Stay Ahead
Trump Reverses Course and Criticises UK-Mauritius Chagos Islands Agreement
Elizabeth Hurley Tells UK Court of ‘Brutal’ Invasion of Privacy in Phone Hacking Case
UK Bond Yields Climb as Report Fuels Speculation Over Andy Burnham’s Return to Parliament
America’s Venezuela Oil Grip Meets China’s Demand: Market Power, Legal Shockwaves, and the New Rules of Energy Leverage
TikTok’s U.S. Escape Plan: National Security Firewall or Political Theater With a Price Tag?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
Will AI Finally Make Blue-Collar Workers Rich—or Is This Just Elite Tech Spin?
Prince William to Make Official Visit to Saudi Arabia in February
Prince Harry Breaks Down in London Court, Says UK Tabloids Have Made Meghan Markle’s Life ‘Absolute Misery’
Malin + Goetz UK Business Enters Administration, All Stores Close
EU and UK Reject Trump’s Greenland-Linked Tariff Threats and Pledge Unified Response
UK Deepfake Crackdown Puts Intense Pressure on Musk’s Grok AI After Surge in Non-Consensual Explicit Images
Prince Harry Becomes Emotional in London Court, Invokes Memory of Princess Diana in Testimony Against UK Tabloids
UK Inflation Rises Unexpectedly but Interest Rate Cuts Still Seen as Likely
AI vs Work: The Battle Over Who Controls the Future of Labor
Buying an Ally’s Territory: Strategic Genius or Geopolitical Breakdown?
AI Everywhere: Power, Money, War, and the Race to Control the Future
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
×