Following HMRC’s recent tax amnesty targeting plumbers, those strike-happy tax collectors have launched another campaign encouraging businesses with revenues above the VAT threshold (currently £73,000) who are not currently VAT Registered to come forward to admit their unpaid taxes – and incur a reduced penalty of only 10% of the the VAT owed.
HMRC will be sending out warning letters to around 40,000 small businesses and individuals over the coming weeks to inform them of the new scheme, under which they can come forward and admit their VAT under-payments until the 30th September. If under-payers choose not to come forward and are subsequently caught they could face heftier fines and even criminal charges.
HMRC’s Director of Risk and Intelligence Mike Wells said:
“This is our third campaign, raising more than £500m from voluntary disclosures and a further £100m so far from follow-up activity. [...] The aim is to make it easy for individuals and businesses to contact us, make a full disclosure of their income and face a reduced penalty on any tax owed.
“I 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 available terms.”
Although freelancers, contractors and small businesses with turnover under £73,000 for the last twelve months can choose whether or not to go VAT Registered, once you exceed that amount registration is mandatory Those who either chose not to register or weren’t aware of the requirement to register are the targets of this new initiative.
To take advantage of HMRC’s reduced 10% penalties, companies must first register their interest, then provide HMRC with details of VAT owed, and be prepared to pay all amounts owed (including penalties) by 31st December this year.
Photo by Money Images – CC
