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Help please. A group of ordinary folks approx 50 individuals had recently been conned by an organised scammer/builder who took 25-30% deposit from the contract value. The building work never started and this individual disappeared and put the company in liquidation. The authority that deals with this matter told us that the company have paid VAT to HMRC. One victim has received the money back for the VAT refund because she is VAT registered and it was done through her accountant, the rest of the people have no clue how to claim the VAT from HMRC because they were told that they are not VAT registered. Mostly are ordinary working people, retired, or with young family and do not have accountants. The VAT paid per person ranges from £1,000 to £4,000, for the deposit that had been taken.

When one of us wrote to HMRC, the reply was not helpful because the victims were not VAT registered. Can someone advise how to claim this VAT back, for non VAT registered persons, surely there is a way to claim, is there any special form? Whether this can be done as a group or only individually. Having lost money to the con man we try to recoup the VAT, like they say every little help.

You can't reclaim it.
(I'm amazed the scammer paid it to HMRC. How do you know this?
What is "the authority" that deals with this matter?

Hi Pawncob
It is Trading Standard. I’m amazed that so much VAT paid for services and goods never delivered, but we can’t claim it back! What a system.

Pawncob is right unfortunately.

You are concentrating your efforts in the wrong place. You should try and get the funds back from the fraudster, not HMRC. HMRC have done nothing wrong (on this occasion anyway).

You can pay to liquidate the company, the liquidator will then deal with any illegal actions by the director and can ask for the money to be repaid to the company, which can then inturn be repaid to you as a creditor of that company.

Hi AdamS93, his liquidator said there’s no money left. All creditors received nothing. But VAT had been paid to HMRC. Creditors never received goods or services. Thanks

Hi AdamS93, his liquidator said there’s no money left. All creditors received nothing. But VAT had been paid to HMRC. Creditors never received goods or services. Thanks

Was this a scam or a business that went bust?

If it was a scam, I'd assume the scammer would steal the VAT too.

If it was a business going bust then I'd be surprised if VAT was due on money from creditors who hadn't received their goods.

It's a scam but is was made to look as though a business that went bust. Took deposits from creditors right to the end before liquidation. No office rent it was a virtual office, no wage roll, no machinery or building equipment and no intention of doing construction work. In this instance the VAT was paid, don't ask me why. A creditor has received VAT back because she was VAT registered, the rest get nothing. Surely there must be a way to claim VAT for non VAT registered. if you cancel the airline ticket you get the VAT/tax back.