The taxman issued a press release today reminding so-called “VAT rule-breakers” that they have until 30 September to notify their intention to pay what they owe – under the HMRC “VAT campaign”.
The HMRC initiative is aimed at those trading above the VAT registration turnover threshold of £73,000; but who have not yet registered for VAT purposes. The tax authority is particularly targeting the following sectors: construction, business services, hair and beauty, hotels, catering, retail distribution, recreational services, motor vehicle distribution, vehicle repair, sanitary and domestic services, agriculture, horticulture, property management and road haulage.
What does it mean from me?
Under the terms of the VAT campaign those who have not yet registered for VAT can step forward any time up to the end of September, to notify HMRC that they want to come clean. If they go on to make a full disclosure by 31 December 2011, most traders will face a low token penalty rate of 10% of the late paid VAT. Those coming forward are expected to also disclose any other tax arrears.
After 30 September, using information pulled together from different sources, HMRC will investigate those who have failed to come forward. Substantial penalties (up to 100% of the tax due) and possibly criminal prosecution could follow.
How can Lynam Tax Enquiry Experts help me?
If you are undergoing a tax investigation or a compliance check then specialist help from Lynam Tax Enquiry Experts could save your blushes and your business. Plus, our massive experience will almost certainly save you tax and penalties as well.
*For a free, confidential chat about your tax affairs, don’t delay, call Paul Lynam now on 0845 643 9997.