MTIC fraud is becoming more prevalent with companies providing Payroll and other labour services.

It its simplest form, a business (Company A) outsources its payroll to a business that specialise in this (Company B). Payments are made by Company A for the services and the VAT element of that payment does not get paid to HMRC by Company B.

Sometimes Company B sub-contracts the work to another company who disappears without paying the VAT.

Just like any MTIC case where a company disappears to fraudulently avoid paying the VAT due, HMRC will look to recover that loss from Company A, if it knew or should have known of that fraud. Click here to view our general MTIC page.