Staffordshire firm slapped with £1m fine for 'transactions connected with VAT fraud'
A Staffordshire company and its sole director have been hit with a fine of more than £1m due to 'transactions connected with VAT fraud'
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HMRC has issued a penalty of £1,156,856.10 to Prism Payroll Limited and the company’s sole director Michael James Halford.
In a list published on November 28, the tax authority states the penalty is related to "transactions connected with VAT fraud". It was the first time HMRC have updated their fraudulent VAT transactions list since June 2023.
Halford was the sole director of Prism Payroll, which was set up in October 2016. The company describes itself as a provider of book-keeping activities on Companies House and is listed by HMRC with previous addresses in Woodseaves and Rugeley.
According to the HMRC, the VAT penalty relates to a VAT default over more than two years from June 2019 to August 2021, and both the company and Halford himself are liable for the penalty.
Prism Payroll is also facing an active proposal to strike the company off Companies House register and the company's accounts are three years overdue.
The abridged accounts filed for year end March 31, 2020 showed that the business had net assets of £25,900 and profits of £25,780, with three staff members.
