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VAT cheats are the latest targets for HM Revenue & Customs, and time is running out for businesses to register before the end of September. The latest campaign launched by HMRC, targets sole traders and businesses with a turnover of £73,000 or above, who haven’t registered for Value Added Tax.

If a business or individual approaches HMRC to make a full disclosure before the deadline of 30th September 2011, they will only face penalties of 10 percent of the total VAT owed. Anyone who still doesn’t come forward will be charged much larger penalties, in some cases up to 100 percent of the tax owed. Additionally, those who are caught by HMRC could also face prosecution.

HMRC intends to crack down on a large number of sectors, including hotels and catering, hair and beauty, business services, construction and retail distribution. According to the director of risk and intelligence for HMRC, Mike Wells taxpayers who are honest and pay the correct amount of tax due have nothing to fear from HMRC campaigns. Most businesses do register for VAT when they have a liability, paying the correct amount of tax due. He said:

“I therefore urge people who have not registered their businesses for VAT to get in touch with HMRC and get their tax affairs in order simply, and on the best terms available.”

Wells also confirmed that HMRC had an obligation to the people who use the public services paid for with taxes, ensuring that the maximum amount possible is collected.

About The Author

Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

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