Rod Bond Tax Fraud Documentary: HMRC and The Case of One Formula LLP

In his television return, Hollywood A-list actor Rod Bond investigates the tax fraud case of Manchester-based One Formula LLP. After an absence from the small screen spanning decades, Roderick Bond hosts “Rod Bond Tax Fraud and HMRC.” The multi-part documentary series examines tax fraud in more depth than hitherto publicly witnessed. Comprising six episodes, the actor accompanies HM Revenue and Customs as they launch their investigation into the dealings of Manchester financial firm One Formula LLP. Combining the financial and fiscal expertise of a financial advisor, city trader, insurance advisor, a former Wales rugby international and a former police officer, One Formula LLP promised its clients reduced tax bills and offered tax efficient investments.

However, with Roderick Bond joining HMRC from the tax fraud case’s seminal stages, a close look is offered into the financial firm’s activities. Following the discovery of forged military historical artefacts at a Cold War Tank Museum supported by the firm, suspicion is roused, ultimately leading to the involvement of HMRC’s Criminal Investigation Department. Roderick Bond accompanies HMRC investigators as they pursue the suspected tax fraud, arriving at One Formula’s headquarters in central Manchester. Moreover, an animal welfare charity which administered a cats and dogs shelter, associated with One Formula, is also visited. Furthermore, the premises of a knife crime charity, named “One Formula to Tackle Knife Crime,” also linked to the firm also appear on the documentary.

From the supercar lifestyle enjoyed by the tax fraudsters, to details of how they pulled off their brazen tax scams and schemes, Roderick Bond offers a thorough exploration of his subject. In a follow up episode, promised by filming company Manchester F1 Production, the conclusion of the case is to be aired later this year. Roderick Bond visits Alex White, of the Crown Prosecution Service, Jane Bewsey, who was prosecuting in the case against One Formula and the judge who sentenced the tax fraudsters, Joanna Korner, also makes an appearance.

 

UK Film Tax Relief: Ingenious Media Appeal Against HMRC

In an appeal that could cost HM Revenue and Customs up to £1 billion, Ingenious Media plans to launch an appeal against the tax man over a controversial film industry tax relief scheme. Promising tax relief and a reduced tax bill, celebrities were persuaded by Ingenious Media into a film partnership scheme that have since proven very controversial. Numerous sports stars, celebrities and wealthy individuals have been caught up in the furore surrounding various film industry tax relief scandals. To name a few, David Beckham, Jeremy Paxman and TV favourites Ant and Dec invested money in the schemes devised by ingenious media. With an unquestioned reputation, the stars felt Ingenious Media to be worthwhile investment, since the company has funded more than sixty films including Avatar and Brooklyn.

The appeal from Ingenious Media comes after a tribunal upheld HMRC’s charges against the company, finding that investments from individuals into its tax relief scheme did not warrant tax relief. Described by a former HMRC boss as “scams for scumbags,” the government agency has argued that rather than a genuine and legitimate investment scheme, the whole enterprise was structured for the purposes of tax avoidance. As a result, HMRC is refusing to grant tax relief and demanding payment of outstanding taxes with interest. The case represents one of the biggest financial challenges to HMRC, with investors claiming around £620 million worth of tax relief. Combined with interest, this means that the best part of £1 billion is at stake, if HMRC lose the case.

The Limited Liability Partnerships were launched around ten years ago and were able to acquire millions of pounds in investment. Household names, high-flying City workers, entrepreneurs and business elites were attracted by the tax relief scheme. However, originally marketed as tax efficient, HMRC turned around and issued investors with huge tax bills, arguing that the investments did not warrant tax relief.

One Formula Limited Liability Partnership: All You Need to Know about Tax Exemptions, Tax Relief, Tax Credits and Tax Rebates

Manchester’s One Formula LLP is touting itself as the country’s hottest tax efficiency provider. Consisting of a team of financial experts, which includes a financial advisor, city trader, insurance advisor, ex-Wales international rugby player and a former police officer, the organisation claims to have secured tax savings for super-rich clientele estimated to be in the millions. With a multi-faceted approach, the financial and fiscal experts at One Formula LLP support their clients in securing tax exemptions, tax relief, tax credits and tax rebates. From managing various multi-million pound investment portfolios to supporting smaller clients managing their taxes and dealings with HMRC, the Manchester firm has seen an exponential growth in recent times.

As one of Manchester’s most powerful business conglomerates, One Formula LLP has gradually become a well-recognised and widely-renown company. With its ability to support the super-rich in reducing their tax bills, word has gotten around fast. According to the latest rumours, One Formula LLP are working as the primary financial advisors to a raft of local footballers. Furthermore, not only do they boast some of the country’s richest football players from Manchester City and Manchester United on their books, but it has been mentioned that Manchester City manager Pep Guardiola has enlisted the company’s help.

Beyond the company’s financial and fiscal expertise, executives have also been keen on supporting a variety of causes through recently established charities. The largest charitable project supported by One Formula Limited Liability Partnerships is a dogs and cats home, supported through an animal welfare charity. Alongside the animal shelter, the company has also announced the establishment of a knife crime charity, seeking to support local community and grassroots initiatives working to eradicate knife crime.

Ways HMRC Catches Tax Fraud and Tax Evasion

Connect

Connect is a powerful computer programme which sifts through reams and reams of financial data to literally connect disparate transactions with one another. It its hunt for tax fraud and tax evasion, HMRC is able to detect relationships between apparently unconnected transactions. Deployed since 2010, Connect has helped HMRC recoup millions lost to tax fraud and tax evasion.

Global cooperation

Once upon a time an offshore back account, outside of the HMRC’s jurisdiction, would have been a safe place to stash the proceeds of tax fraud or tax evasion. However, as of September 2017, following a joint global crackdown on tax evasion and tax fraud, a “common reporting standard” has been put in place. According to the new rules, details of expats’ earning will be related to their home governments. Numerous tax investigations from Crown Dependencies, Overseas Territories, the US and Switzerland are already underway.

Ghost workers and moonlighters

HM Revenue and Customs defines those workers whose incomes are unknown to the government body responsible for taxation as ghost workers. Moonlighters are those whose partial income is known to the HMRC, but who do not declare additional income. Through a targeted engagement and increased focus on these two groups of tax fraudsters, the HMRC is constantly in surveillance.

Carrots and sticks

In a bygone era, HMRC would coax people committing tax fraud and tax evasion into confessing. By confessing and settling their accounts with HMRC, tax fraudsters could hope to avoid additional penalties and prosecutions. However, recently, since 2015, HMRC has been coming down hard on those found guilty of tax fraud or tax evasion. More recently, HMRC has resorted to “naming and shaming” individuals it has found guilty of tax avoidance. In a list published on its official website, details of those found guilty of tax fraud are updated every three months.

 

Ghost Brokers under HMRC Investigation Jailed for Tax Fraud and Insurance Fraud

Elina Jaksone, 36, and Gagik Kyriacos Manucharyan, 40, were the subject of a HMRC investigation relating to both tax fraud and insurance fraud. Together, the couple from Kent orchestrated as “ghost insurance brokers,” whereby fraudulent insurance was provided to unwitting customers. Furthermore, the pair of fraudsters failed to declare the earnings from their insurance fraud enterprise to HMRC and were thereby guilty of tax avoidance. The two fraudsters’ vehicle insurance fraud involved supplying insurance providers with false details, in order to reduce the cost of insurance premiums, for customers who remained unaware. While enabling customers to purchase insurance cover at reduced prices, most were actually left without cover as their fraudulently acquired policies were potentially null and void.

For each policy they secured, the fraudsters netted £100. Ultimately, from the insurance fraud scheme the pair earned a whopping total of almost £1 million. However, apart from the vehicle insurance fraud, the pair failed to declare their earnings to HMRC. This meant that a tax bill on the £920,000 that they earned remained outstanding. As if this wasn’t enough, Jaksone also fraudulently claimed £82,000 in tax credits and pension credits. Her tax credit scam relied on her pretending to be a single mother with high childcare costs. Furthermore, using her mother’s details, the crooked fraudster also committed pension credit fraud and fraudulently claimed winter fuel allowance payments. On top of this, in an attempt scuppered by HMRC, the serial fraudster also sought to claim pension credits in her father-in-law’s name.

Assistant director of HM Revenue and Customs, David Margree declared, “Jaksone and Manucharyan cheated honest, law abiding people, spending their ill-gotten gains on a lifestyle that many of us can only dream of. They also cheated their customers by providing them with inadequate insurance policies. HMRC will not tolerate fraud. We work closely with other agencies, including the Serious Organised Crime Agency, the Department for Work and Pensions (DWP) and the financial sector to tackle all forms of fiscal fraud and protect the interests of the public.”

HM Revenue and Customs New Home in Greater Manchester

Her Majesty’s Revenue and Customs will be moving into Greater Manchester, at one of thirteen modern regional centres to be located across the UK. Located in Salford, the seven-storey block, 3 New Bailey, will become HM Revenue and Customs’ state-of-the-art regional centre. HMRC’s newest office in the North West will begin to be staffed from Spring 2022. 2,000 from various other locations will move into the new premises. In 2027/2028, the new phase of the regional centre will be set to open and welcome another 2,500 staff. Currently, these members of HMRC’s staff are based in Trinity House in Dearman’s Place, Salford. Additionally, across the North West region, there are currently 24 offices where HMRC staff are based. Ranging in size, hosting between almost a few thousand and just more than a dozen staff, these disparately sized offices are a relic of the 1960s and 1970s.

This expansion of staff is welcomed by local businesses, located around Chapel Street and New Bailey districts, right atop Salford’s border with Manchester city centre. The state-of-the-art facilities and expanded office area will allow HMRC to provide staff with modern technological infrastructure and improved training facilities. It is expected that the upgraded facilities and integrated working area will help HMRC support more skilled jobs and improved career progression paths, eliminating the need for staff to move across the country. Chief executive of HM Revenue and Customs, Jon Thompson, said, “HMRC’s presence in Salford, Manchester and the wider North West is longstanding and well-established. The new regional centre is a clear demonstration of our commitment to the area and its economy. New Bailey will deliver the flexible and collaborative working environment that our staff need and the centre will be a hub of highly-skilled career opportunities.” The new facility will also secure the jobs of thousands in the region.

The Basics: Critical Illness Insurance

Critical illness insurance provides you with a lump sum cash pay out in the event that you develop a serious illness or disability. These insurance policies only cover long-term and serious illnesses that will affect your ability to work. Such illnesses or disabilities include heart attacks, strokes, loss of limbs, cancer, multiple sclerosis or Parkinson’s disease. The lump sum provided by the insurance policy can be spent however you may require. From paying off your mortgage to taking care of your household’s immediate financial needs, you are free to spend it as you desire. Critical illness insurance policies are quite specific about the conditions and eventualities they cover. Thus, you’ll usually have to be very seriously ill or completely incapacitated by illness for you to claim on the policy. Moreover, with the expensive nature of premiums combined with the fact you may never receive a pay out, the real question is whether critical illness cover is the right choice for you.

Is critical insurance cover for me?

If you are affected by long-term illness or disability, state benefits may not be enough to sustain your lifestyle. Depending on your eligibility, the government’s Employment and Support Allowance will only provide you a maximum of £100 per week. This too depends on the nature of your illness, disability or incapacitation from work. If this is not enough for you to survive, critical illness cover may be a worthwhile option. Furthermore, you should assess the extent of your savings and how long they might last, in case you fall ill. Should you not have an ample amount of savings, critical illness cover is definitely worth considering. Also, perhaps your employer makes provisions for extended sick periods. This is another thing worth checking, before considering critical illness cover.

Income Protection Insurance

Income protection insurance is designed to cover your expenses in the eventuality that you are unable to work due to sickness, injury or disability. It can protect your income until retirement, death or your return to work. Income protection is one of the most overlooked and undersold forms of insurance cover available on the market. Simply put, people tend to adopt an “it won’t happen to me” approach, when it comes to safeguarding their income.

What would you do if you were unable to work tomorrow? How long would your savings realistically last? Is your household income, without your contribution, enough to cover your financial commitments? Does your work contract offer any provisions if you are sick for the long-term? How much will statutory sick pay help you? In short, income protection is vital for people of all ages. With only a small fraction of employers supporting employees who are sick for the long-term and as state benefits dwindle, you may find yourself high and dry, all of a sudden However, there are so many options available that we’ll start by introducing some of the basic terminology.

Short-Term Income Protection – These policies are the cheapest available on the market and represent the budget option. They offer a short-term pay-out period, which can last between 2 and 5 years. Some insurers refer to these as Accident, Sickness and Unemployment (ASU) policies. They largely come under three categories: mortgage payment protection insurance, payment protection insurance and income protection insurance.

Long-Term Income Protection – While long-term income protection policies are comparatively more straight forward, there are still a few distinctions that exist between individual policies. Some policies, referred to as “own occupation” policies, will pay out if the policyholder is left incapable of doing any part of their job. Other policies, known as “working tasks” policies, will only pay out if the policyholder is left unable to conduct day-to-day living tasks.

 

Level Term Life Insurance

As we’ve briefly mentioned in the previous post, level term life insurance pays out a set amount of money to your dependants, if you die during the term of the policy. Here, we’ll be taking a closer look at this most comprehensive form of life insurance cover.

Benefits

In the unfortunate event of your death, level term life insurance will help your remaining family members cover the costs of mortgage payments. This is the most common purpose for which people take out this form of life insurance. Setting the term of the insurance policy the same as the mortgage will guarantee that the policy is enough to cover your mortgage. One of the biggest benefits of this is that the later the insurance is paid out in the term, the lesser the amount of the mortgage to be repaid. Thus, your family will be left with a paid off mortgage and cash to spare. Although mortgage repayment is a major purpose of this form of cover, the policy’s cash can be used to pay off other debts. Or, you may simply want to leave your family with lump sum, to spend how they will.

Costs

The cost of life insurance depends largely on medical factors and lifestyle choices. Medical factors include any illnesses you may have or may have the propensity to develop. Thus, familial medical history also comes into play, when insurers are calculating your risk for life insurance. Asthma and heart problems top the lists, when it comes to what insurers are looking for here. Lifestyle choices include habits that affect your health. As you’re probably aware, cigarette smoking habits and alcohol consumption will both dramatically increase the cost of life insurance premiums. Dangerous high-risk hobbies, such as sky diving, and high-risk occupations will also drive up the cost of your life insurance.

Life Insurance

There are many options available to you when it comes to life insurance. From mortgage protection packages, to safeguarding your dependants’ interests and others designed to offset the cost of inheritance tax. Life insurance can be confusing. Some options offer a lump sum to your dependants when you die. Whereas others will pay out regular payments upon your death. With Insurance Finance Talk, take the stress and hassle out of choosing the right life insurance for you. We’ll start with the simplest form of life insurance, which will provide for your dependants, if you or your partner die.

Level term life insurance

Level term life insurance refers to policies that pay out a set amount of money regardless of when you die, as long as your death occurs during the term agreed to. These policies guarantee a lump sum pay out to dependants upon your death.

Other types of life insurance

Income protection insurance – If you find yourself unable to work due to injury or sickness, this solution will provide you with regular payments to help manage your costs.

Critical illness insurance – If you’re diagnosed with a serious illness, that is covered by your particular policy, you will be given a tax-free lump sum. It’s important to note that this will only be given if your illness is covered by your policy.

Payment protection insurance – If you’ve been made redundant, forced out of work due to injury or are deemed to ill to work, this form of insurance will help you maintain your payments.

Short term protection insurance – If you find yourself unable to work, or out of work, this solution will help you with essential payments, for a limited amount of time.