London Daily

Focus on the big picture.
Tuesday, Mar 24, 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
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
×