VAT avoiders: come clean before 30 September 2011
12 September 2011
Bookmark and Share
 
   
Email article : Print article : More articles like this
HM Revenue & Customs (HMRC) is warning VAT rule-breakers that they only have until 30 September to register to pay what they owe or face substantial penalties and criminal prosecution.
The new campaign from HMRC focuses on individuals and businesses trading above the VAT registration threshold – a turnover of £73,000 – but who have not yet registered for VAT.
 
Target sectors include:
  • construction
  • business services
  • hair and beauty
  • hotels and catering
  • retail distribution
  • recreational services
  • motor vehicle distribution and repair
  • sanitary and domestic services
  • agriculture and horticulture
  • property
  • road haulage.
Under the terms of the VAT Initiative, those who have not registered to pay VAT can come forward any time up to Friday, 30 September to tell HMRC that they want to take part. If they make a full disclosure, most will face a low penalty rate of 10% on VAT that has been paid late.
 
After this date, HMRC says it will use information pulled together from different sources to investigate those who have failed to come forward. Substantial penalties and even criminal prosecution could follow.
 
To take part in the VAT Initiative, people and businesses must:
  • Register with HMRC by 30 September to "notify" that they plan to make a voluntary VAT disclosure.
  • Tell HMRC about VAT due and make arrangements to pay it, as well as any penalties due, by 31 December.
To let HMRC know of your intention to make a tax disclosure:

Those coming forward are invited to also disclose any other tax arrears. Where they have to pay a penalty on undeclared tax other than VAT, this will be lower than the customary penalty of up to 100% charged to those who fall outside the opportunity.


Related articles