Michael Charles Waddingham, a 44 years old company director of Grove Gardens, Teddington, London, pleaded guilty to one count of tax fraud at Wimbledon Magistrates Court and was jailed for two years, suspended for two years, on Friday 10 March 2017.
At Kingston Crown Court the judge added a financial penalty of £200,000 to be paid within six months, a 200-hours community work order to be completed in 12 months, a six-month curfew between the hours of 20:00 to 05:00 with electronic tag and a victims support charge of £425.
Waddingham pleaded guilty to the fraudulent evasion of income tax by failing to declare his income to HMRC for the tax years from 2008/9 through to 2011/12 contrary to section 106A of the Taxes Management Act 1970.
The Teddington landlord ran multiple property companies but failed to declare his income or that he was a company director to HM Revenue and Customs (HMRC), and it was estimated that in total he evaded £281,000 in taxes.
Property developer and landlord, part owner of several racehorses and currently director of a betting syndicate, Waddingham is also a director of two property companies and owns 17 properties throughout England, was caught out through an HMRC investigation. This found he had not submitted tax returns for several years, failed to declare rental income, that he had been a director of seven land and property development companies – his income is above £100,000 per year.
Following his arrest in 2015, HMRC forensic accountants worked with his own accountants to calculate the total Income Tax and Capital Gains Tax that he owed.
Waddingham is currently the registered Director of Chantry Land and Planning Ltd (land or property development) and Excelbet Ltd (a betting company).
He was registered as a Director with companies house for the following companies during the fraud, his role was listed as land agent, land director or property developer:
-Chantry Estates (London) Ltd of Teddington trading in property development
-Friends of the Turf Racing Ltd of Maidenhead– horseracing / betting syndicate
-Chantry Estates (South East) Ltd of London (W2) – land and property development
-Premier Racehorse Ownership Ltd of Maidenhead – horseracing / betting syndicate
-Sports Services (MGM) Ltd of London (SW1Y) –horseracing / betting syndicate
-A2B Pay Ltd of Chiswick – mobile phone / electronics
-Kemblewood One Ltd of Stonehouse, Gloucestershire – trade not disclosed
In addition to running the nine companies and his multiple directorships, he was also employed between 2007 and 2010 as an employee at an estate agents and paid tax under their PAYE scheme, but he failed to submit Self-Assessment tax returns between 2008 and 2012 in respect of earnings above £100,000 per year due to the directorships he held as required by HMRC.
HMRC says, anyone with information regarding suspected fraud is encouraged to contact the 24-hour hotline on 0800 59 5000 or report it via the website: www.hmrc.gov.uk/reportingfraud/online.htm
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London Landlord Fined £200,000 for Tax Fraud https://t.co/vty4PPi6pG
— LandlordZONE (@LandlordZONE) March 17, 2017