Posted by Tax Innovations on 08 Sep 2011
“Amnesty” VAT ” Rule Breakers
HM Revenue & Customs (HMRC ) have today issued a reminder to all unregistered individuals and businesses trading above the VAT registration threshold (VAT rule breakers) that they have until the 30th of September to come forward in return for a reduced penalty.
The campaign to crack down on VAT rule breakers was formally launched in July and focuses on those trading above the VAT registration threshold (turnover of £73,000) in an effort to encourage unregistered users to make a full disclosure before 30th September in return for a low penalty rate of 10% on late VAT payments.
Those that to ignore this offering may face substantial penalties and even criminal prosecution.
HMRC’s Mike Wells, Director of Risk and Intelligence said,
“This isn’t about honest taxpayers, who have nothing to fear from any of our campaigns. But we are committed to ensuring tax is paid so that the maximum is available for public services used by everyone. 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.”
To take advantage of the VAT initiative the following steps must be taken:
- Notify HMRC by 30th September of the intention to make a voluntary VAT disclosure.
- Register for VAT formally with HMRC by completing a necessary registration form, and pay VAT/penalties due by December 31st.
Contact Tax Innovations about VAT
If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or firstname.lastname@example.org.
- Property Partnership Incorporation and SDLT
- Non-Resident Landlords – UK Tax Update
- Tax Relief For Residential Mortgages
- UK Property Sales: Capital Gains Tax for Non-Residents
- Top 10 Expat Tax Tips for Individuals Moving to the UK