HM Revenue and Customs (HMRC) has reported that gang leader Tomasz Skubis and his five co-conspirators, who were caught with counterfeit cigarettes worth over £1.8m at a Lincolnshire farm, have been sentenced. HMRC arrested Marcin Kopec and Wojciech Rymarczuk of the gang as they unloaded three large shipping containers at the farm in June 2019. The remaining gang members were arrested on the same day in nearby locations. All six members were convicted of conspiracy to evade excise duty following a four-week trial at Nottingham Crown Court and were sentenced to 26 years total, with each gang member receiving a sentence between three and five years. Gang members Wojciech Rymarczuk, Marcin Kopec and Tomasz Skubis did not attend the trial and were sentenced in their absence. Warrants have been issued for their arrests.

HMRC has published technical notes on its sanctions enforcement activity and the performance of its Fraud Investigation Service (FIS) for 2025–2026. On sanctions enforcement, HMRC reported 58 seizures of sanctioned goods, a £1.16 million compound settlement for a breach of the Russia (Sanctions) (EU Exit) Regulations 2019, SI 2019/855, and confirmed that 22 criminal investigations remain ongoing. It also announced plans to seek new powers during 2026–27 to publish details of companies that enter into compound settlements for strategic export and sanctions offences. The FIS technical note highlights continued use of HMRC's civil and criminal enforcement powers against serious tax fraud, with £4.2 billion in compliance yield generated during 2025–26, an 87% court success rate for criminal prosecutions and more than £2 billion in Exchequer benefits arising from criminal investigations.

HM Revenue and Customs (HMRC) has reported on the sentencing of a gang that set up 90 fake companies to defraud £800,000 in a VAT and car finance. The leader, Shahid Mohammed, has been sentenced to six years’ imprisonment and other co-defendants were handed suspended prison sentences and ordered to work a number of unpaid hours. The gang would steal identities using their various companies and submit fraudulent VAT repayments.

HM Revenue and Customs (HMRC) has reported the sentencing of a group 6 people who were found guilty of entering into, concerned in acquisition, retention, use or control of criminal property (recordable) contrary to sections 328 (1) and 334 of the Proceeds of Crime Act 2002. HMRC has reported that the group laundered £26m to Dubai through the use of seven different companies, false paperwork trail and cash couriers. HMRC has said that the laundered money is believed to have been generated by alcohol duty fraud. Mohammed Zafer, who led the group, was sentenced to 12 years, with the other five members receiving sentences from 18 months to four years and nine months.

HMRC has announced that David Greenhalgh and Christos Farmakis have each been sentenced to 16 years’ imprisonment for illegally brokering the supply of controlled military goods to conflict zones, including Sudan, South Sudan and Libya, without the licences required under UK trade controls. The offences involved the brokering of combat aircraft, surface-to-air missile systems, anti-tank missiles and assault rifles between 2009 and 2016. HMRC’s investigation found that the defendants used forged end-user certificates to conceal the intended destinations of the weapons and routed transactions through overseas companies in attempts to place the transactions beyond UK jurisdiction and evade detection. Greenhalgh and Farmakis were convicted at Southwark Crown Court on 11 June 2026 of offences under the Export Control Order 2008 and were sentenced on 23 September 2026. HMRC noted that, as a UK national, Greenhalgh remained subject to UK trade controls when conducting business overseas. Farmakis was tried and sentenced in his absence, and HMRC is working with international partners to bring him to the UK.

Tax analysis: In Fluid Systems, the Upper Tribunal (UT) granted an application by the taxpayers for cross-examination of an HMRC witness at the hearing of their judicial review relating to a decision to refuse repayment under the Disguised Remuneration Repayment Scheme.

HMRC has reported that the inheritance tax (IHT) receipts for April 2024 to June 2024 were £2.1b. This is £83m higher than the same period last year.

HM Revenue and Customs (HMRC) has reported that a complex tax avoidance scheme has been exposed on 29 February 2024. HMRC has said that the scheme is linked with Darren Patrick Green, Jason Bougourd and Alizeh Nanji and involves contractors joining Singapore registered Procorre LLP to avoid paying Income Tax and National Insurance. HMRC has warned that those who have joined the scheme, should get out of it as soon as possible and contact HMRC.

FORTHCOMING CHANGE: A consultation (which closed on 7 July 2025) sought views on options for simplifying, modernising and reforming HMRC’s approach to dispute resolution with the aim of raising awareness of the dispute resolution processes and improving access to (and take-up of) alternative dispute resolution (ADR) and statutory review processes. The consultation also proposes aligning and simplifying the approach for appeals processes to combine the benefits of the different approaches currently used for direct and indirect tax disputes. For more information, see News Analysis articles: Tax update spring 2025—Tax analysis—Taxes management and dispute resolution and Tax update spring 2025—Improving HMRC’s approach to dispute resolution. This Practice Note has been written by Anne Redston, Barrister. It is her personal view; she is not authorised to speak for the Tribunals Service or the judiciary. This Practice Note discusses: • the purpose of an HMRC review of a decision • the potential consequences of accepting, refusing or ignoring an offer of a review • the process of a review, and • the interaction with appealing to the First-tier

HMRC has updated its VAT guidance on pension fund management costs to flesh out its VAT policy changes of 18 June 2025, under which employers can recover all the VAT incurred on pension scheme investment services as well as administration services (without having to split investment costs with the trustees) while VAT-registered trustees can recover VAT on costs incurred in supplying chargeable pension management services to employers (subject in both cases to the normal VAT deduction rules).

Wealthy Team HM Revenue & Customs BX9 1BN [insert date of letter] [insert company PAYE reference] Dear [insert organisation name] Non-Statutory Clearance of Implemented Salary Sacrifice Scheme I am writing to advise that [insert company name] has introduced a salary sacrifice scheme in order to provide [insert type of benefit (eg cycle to work scheme, pension)] to staff. I am aware that HMRC will comment on the effectiveness of salary sacrifice arrangements for tax and National Insurance purposes once implemented. Accordingly, I should like to apply for confirmation that the scheme

Law360: A one-off payment made by a power and gas supplier to a worker over changes to his retirement savings plan should be subject to tax and National Insurance contributions, HMRC told the Court of Appeal on 9 November 2023.