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3.oppressive or illegal exaction, as of excessive price or interest: the extortions of usurers
read the sentence as a whole, have a good understanding of the english language and then understand it is talking about forcing people to pay over the odds.
Also, it is not excessive price for the...
ex·tor·tion
–noun 1.an act or instance of extorting. 2.Law. the crime of obtaining money or some other thing of value by the abuse of one's office or authority. 3.oppressive or illegal exaction, as of excessive price or interest: the extortions of usurers. 4.anything extorted.
So not really...
doesnt have to be VAT registed to need to declare his income/expenses to the HMRC. I dont want to appear to be sticking up for him, as by the sounds of it he is a prize c**k, but the mis-information needed correcting