Key Points
- YSK Enterprises imported large quantities of vapes from China between February and April 2023, with Border Force later finding 352,688 vapes in a shipment addressed to the company.
- The shipment had been declared as medical nebulizers; HMRC calculated nearly £15 million in unpaid VAT and customs duty, plus about £437,000 in corporation tax.
- Kyle McGinness and Leanne Moynes were each disqualified from serving as company directors for nine years, with restrictions running into 2035.
- The case does not involve the Vaping Products Duty taking effect in October 2026, but the new regime will add vape-specific excise and duty-stamp requirements to existing customs and VAT controls.
2Firsts
September 11, 2026
According to the UK Insolvency Service on September 10, 2026, two directors linked to YSK Enterprises Limited have been disqualified from serving as company directors for nine years following an investigation into vape imports and unpaid taxes.
UK investigators found that YSK Enterprises had imported large quantities of vapes from China in 2023. Border Force later found 352,688 vaping products in a shipment addressed to the company after goods declared as medical nebulizers were identified as vapes.
HM Revenue & Customs calculated nearly £15 million ($20.3 million) in unpaid VAT and customs duty, alongside about £437,000 in corporation tax.
More Than 350,000 Vapes Found in Misdeclared Shipment
YSK Enterprises was incorporated in 2018 and registered in Essex, England.
Investigators said the company imported large quantities of vaping products from China between February and April 2023.
In May 2023, Border Force examined a shipment addressed to the company and found that goods declared as medical nebulizers were vaping products. A total of 352,688 vapes were identified in the shipment.
HMRC subsequently investigated the company's import and tax affairs.
The Insolvency Service said the company owed close to £15 million in VAT and customs duty. It also faced approximately £437,000 in corporation tax liabilities and had failed to submit corresponding corporation tax returns.
Investigators also found that the company had claimed VAT was not due on sales of the goods.
Dave Magrath, director of investigation services at the Insolvency Service, said the directors had taken steps to disguise what the business was importing before telling HMRC that no tax was owed.
Publicly available UK government records reviewed by 2Firsts do not identify the brands, SKUs, Chinese manufacturers or exporters involved.
Two Directors Disqualified for Nine Years
The two directors were Kyle McGinness and Leanne Moynes.
McGinness' disqualification began in June 2026, while Moynes' began in August. Without court permission, neither can form, manage or promote a UK company during the disqualification period, with the restrictions extending into 2035.
YSK Enterprises entered liquidation in 2024.
The Insolvency Service also said Moynes failed to maintain adequate accounting records. Investigators were therefore unable to establish what happened to more than £1.6 million in company assets, including machinery, vehicles and other business property.
Border Force said the case resulted from intelligence-led enforcement and that action against illicit vape and tobacco trade helps protect legitimate businesses.
Case Involves VAT and Customs Duty, Not the New Vape Excise
The YSK case occurred in 2023, three years before the UK's Vaping Products Duty takes effect.
The nearly £15 million tax liability relates to VAT and customs duty, with additional corporation tax liabilities. It does not involve Vaping Products Duty.
The UK will introduce Vaping Products Duty on October 1, 2026, at a flat rate of £2.20 per 10 milliliters of vaping liquid, or £0.22 per milliliter, regardless of whether the liquid contains nicotine.
The measure represents the UK's first dedicated excise duty on vaping liquids.
Vape Duty and Stamp Regime Starts in October
Once Vaping Products Duty takes effect, vape imports and sales in the UK will face a dedicated excise regime in addition to existing customs, VAT and corporate tax requirements.
Under government rules, taxable vaping products newly released onto the UK market from October 1, 2026, will generally need to carry a Vaping Duty Stamp.
Eligible unstamped stock manufactured or imported before October 1 can continue to be sold during a transition period ending March 31, 2027.
From April 1, 2027, taxable vaping products sold in the UK will generally need to carry a valid duty stamp unless they remain under duty suspension.
Importers will also need to correctly declare product classifications and information related to vaping-liquid volume in order to determine Vaping Products Duty liabilities.
The misclassification in the YSK case occurred before the new duty was introduced. Under the new regime, however, product classification and liquid volume will also directly affect vape-specific excise liabilities, adding another tax-compliance requirement at the import stage.
The YSK case shows that misdeclared imports and VAT and customs violations were already capable of generating substantial tax losses before the UK introduced a dedicated vape duty. From October 2026, Vaping Products Duty and the duty-stamp scheme will add product-specific excise and market-identification requirements to the existing import and VAT framework.
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Cover Image: UK Insolvency Service / Border Force
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