Samir Pasha on HMRC VAT Investigations: Expert Criminal Defence on Direct Access

HMRC is ramping up its pursuit of VAT fraud as part of an ambitious government initiative to reduce the “tax gap”—the £46.8 billion shortfall between taxes owed and taxes actually collected. VAT compliance has become a major focus of this enforcement campaign.

The expansion of HMRC’s investigative capacity is substantial:

• 5,000 New Compliance Officers: Plans confirmed by the Chancellor include hiring 5,000 new tax officials over the next five years to boost general compliance activity across individuals and businesses.
• 1,800 Debt Officers: An additional 1,800 debt officers are being hired to manage and recover outstanding tax debts, which stood at £44.0 billion at the end of March 2025.
• Targeted Teams: Specific teams are being created or expanded, including a new 350-strong team within the Fraud Investigation Service targeting serious fraud and evasion by small businesses, 400 people to tackle non-compliance regarding offshore taxes by the wealthy, and increased staff working on Research and Development (R&D) tax relief compliance, growing from around 100 people in 2020-21 to over 500.

With HMRC’s enhanced resources and focus on enforcement, anyone facing a VAT investigation needs to understand the potential criminal consequences and obtain specialist legal advice without delay.

When VAT Investigations Turn Criminal

Not all VAT disputes lead to criminal charges, but HMRC takes a hard line on deliberate fraud. Criminal investigations typically arise from missing trader fraud, carousel schemes, false VAT reclaims, or systematically underreporting output tax. If HMRC suspects dishonesty rather than simple error, they may refer your case to their Fraud Investigation Service or directly to the Crown Prosecution Service.

Warning signs include being asked to attend an interview under caution, having your premises searched under warrant, or receiving correspondence suggesting fraudulent activity. At this stage, the matter has escalated beyond civil penalties.

How a Criminal Barrister Can Protect You

A criminal barrister brings specialist knowledge of both VAT regulations and criminal law. We understand how HMRC builds fraud cases and where vulnerabilities exist in their evidence. Early advice can prevent mistakes during interviews that could later be used against you in court.

We have extensive experience advising and representing company directors, sole traders, companies, and self-employed individuals facing VAT investigations. Whether you’re dealing with allegations of Missing Trader Intra-Community (MTIC) fraud, false reclaims, or systematic evasion, we can assess the strength of HMRC’s case and develop a robust defence strategy.

Our expertise includes appearing in First-tier Tax Tribunals to challenge VAT assessments, as well as defending criminal prosecutions in the Crown Court. We can negotiate with HMRC to resolve matters without prosecution where possible, or vigorously defend you if charges proceed.

Direct Access: Quality Representation, Lower Costs

Many clients don’t realise they can instruct a criminal barrister directly, without engaging a solicitor first. Direct access can substantially reduce legal costs whilst ensuring you receive specialist advocacy from an experienced barrister. You deal with your advocate directly throughout the process, benefiting from continuity and expert guidance.

VAT fraud allegations carry serious consequences—substantial fines, director disqualification, and imprisonment. Don’t face HMRC alone. Early specialist advice from a criminal barrister can make all the difference to the outcome of your case. Contact Samir via Chambers at info@hillhousechambers.co.uk or by calling 020 3026 1945