What would you do with a tax dodging scumbag?

Discussion in 'Accounts & Finance' started by Tin, May 21, 2013.

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  1. Tin

    Tin Just an SEO Staff Member

    5,942 1,647
    We've a supplier whom we paid up front for some programming work (foolishly before receiving an invoice) and now they are refusing to respond to emails or phone calls requesting an invoice for the money paid. The work was not satisfactory so we moved the work to a new programmer for completion.

    Now, I'll accept that we have to swallow this loss and not put it through the books as we've no invoice and chalk it up to experience with a mental note to self not to be so trusting in future. However, is there a way to get one back on this guy as the cheeky scumbag even charged VAT and is clearly intent on just pocketing the lot without declaring the income?

    Posted: May 21, 2013 By: Tin Member since: Nov 14, 2005
  2. fisicx

    fisicx It's Major Clanger! Staff Member

    33,479 9,924
    Negative SEO?
    Destroy his reputation via Gogole?
    Tell the taxman about the fraud?
    Posted: May 21, 2013 By: fisicx Member since: Sep 12, 2006
  3. FirstClassVirtualOffice

    FirstClassVirtualOffice UKBF Ace Full Member

    1,081 211
    Just report him to HMRC but write to him first telling him he has 7 days to cough up he invoice and whatever else you want from him or you will be contacting HMRC for tax, Trading Standards and Customs for VAT. You have to supply a vat invoice when charging vat else its vat fraud I believe.

    Also, you can still put it in as a business expense as the money left your business account and you must ave emails to clarify the work at that cost was ordered and paid for should HMRC ever challenge you.

    You could also take him to small claims court regarding the shoddy service. You have proof you paid him and the email dialogue, so a missing invoice shouldn't matter.

    And then when you have gone as far as you can, destroy him with your seo.
    Posted: May 21, 2013 By: FirstClassVirtualOffice Member since: Nov 5, 2010
  4. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,257 2,486
    To add to what others have said are you able to get any money back via your bank? Might be worth asking if they can cancel/refund the payment.
    Posted: May 21, 2013 By: MyAccountantOnline Member since: Sep 24, 2008
  5. Berkshire Business

    Berkshire Business UKBF Newcomer Full Member

    70 9
    Just report him, I also agree with what's been mentioned above - writing a letter to him and giving him a certain amount of days. If this doesn't work then you have no other choice but to report him.
    Posted: May 21, 2013 By: Berkshire Business Member since: Feb 26, 2013
  6. Anonymouse72

    Anonymouse72 UKBF Enthusiast Free Member

    765 158
    does reporting to HMRC actually work though? i read a post on MSE the other day, supposedly from an HMRC employee, stating that they are inundated with fraud reports & that due to lack of resources, they only look at around 5% of the info received. (similar figures quoted for benefit fraud too). i really hope neither of these facts are true!
    Posted: May 21, 2013 By: Anonymouse72 Member since: Jun 16, 2012
  7. NickJ

    NickJ UKBF Enthusiast Free Member

    980 211
    Too far away to go ask personally?
    Posted: May 21, 2013 By: NickJ Member since: Mar 29, 2012
  8. Tin

    Tin Just an SEO Staff Member

    5,942 1,647
    Thanks for the responses and suggestions, will get a 7 day or else email off to them later today and will report if no invoice arrives.

    Negative seo is not my thing but out of principal I didn't relish the idea of letting them get away scot free when I paid them in good faith and although I wasn't happy with the work I don't feel that it warrants getting the money back after they had done the work. I just think they overstretched their abilities somewhat.

    Posted: May 21, 2013 By: Tin Member since: Nov 14, 2005
  9. YrHenOgledd

    YrHenOgledd UKBF Contributor Free Member

    55 7
    I would be careful about negative SEO, as this could be construed as libel in some cases. By all means send him threatening letters and then go down the route of aggressively pursuing the debt, though.
    Posted: May 21, 2013 By: YrHenOgledd Member since: Jan 10, 2013
  10. Nuno

    Nuno UKBF Big Shot Free Member

    4,780 1,607
    Send a letter and then make a complaint if he stays silent. That way you can argue it is a legal expense and put it through your books non fraudulently.
    If you are ever examined point it out first.

    IMHO your opinion on negative SEO is no surprise, and reflects well.
    Posted: May 21, 2013 By: Nuno Member since: Oct 10, 2011
  11. Bob

    Bob UKBF Big Shot Free Member

    3,668 929
    HMRC link here but you probably need a bit more info for them over and above he won't send you an invoice
    Posted: May 21, 2013 By: Bob Member since: Jul 24, 2009
  12. exceedmedia

    exceedmedia UKBF Contributor Free Member

    58 24
    Also, he could probably claim that the money you paid was in fact a holding deposit for the work, and therefore as the work had not been completed, he hadn't raised the VAT invoice and just left your money "on account" so to speak...

    I'm not sticking up for him though, but just another way he could probably wrangle out of the VAT invoice issue.
    Posted: May 21, 2013 By: exceedmedia Member since: Apr 22, 2010
  13. sirearl

    sirearl UKBF Legend Free Member

    29,807 6,645
    You don't want to know how we deal with people who try to turn us over.

    A hard lesson learnt I am afraid.

    If there is nothing legal you can do,best to forget it or you will pay twice.
    Posted: May 21, 2013 By: sirearl Member since: Apr 23, 2007
  14. Spinoza

    Spinoza UKBF Newcomer Free Member

    25 13
    Sell the debt to one of his customers for a nominal amount. They can knock the value off whatever they owe him and pay him the remainder. There's bound to be at least one of his customers who is in financial difficulty and would jump at the chance to offset some of their liabilities.
    Posted: May 21, 2013 By: Spinoza Member since: Mar 21, 2013
  15. Spongebob

    Spongebob UKBF Ace Free Member

    2,215 1,120
    Why can't you put it through your books?

    If the payment was made by cheque or bank transfer that alone is sufficient documentation to put the transaction through your books for income tax or corporation tax purposes.

    It is only when reclaiming VAT that you need a proper invoice.
    Posted: May 21, 2013 By: Spongebob Member since: Dec 9, 2008
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