Reminder to VAT dodgers
Posted: 19th December 2011
In July this year, HM Revenue and Customs launched a campaign targeted at businesses trading above the VAT threshold (currently £73,000 turnover on a rolling annual basis) without having registered. Rule-breakers were offered a lower penalty rate if they notified HMRC, by 30 September, of their intention to rectify their VAT situation.
Under the terms of the initiative, businesses that have notified HMRC of their intention to take part must register for VAT by 31 December 2011 in order to benefit from a rate of 10 per cent on the VAT that has been paid late.
HMRC will now concent
rate on identifying companies trading above the VAT threshold that did not come forward. Culprits will face substantially higher penalties and even criminal prosecution in some cases.
Although it is now too late to benefit from the terms of the concession, HMRC has said that businesses that need to register for VAT that have not made a notification may still be subject to lower penalties than if they wait for HMRC to catch up with them, provided they come forward before 31 December.
Businesses needing help can call HMRC on 0845 600 5217. Lines are open Monday to Friday, 8.00am to 4.00pm.