Business News
HMRC clamps down on VAT fiddle
A new initiative has been devised and announced by HM Revenue and Customs (HMRC) to target businesses trading above the VAT threshold who have not yet registered for VAT. The campaign will be actioned in the summer, to ensure that HMRC has as much information from parties interested in the initiative.
Mike Wells, HMRC's Director of Risk and Intelligence, explained: “Our aim is to get as much input as possible into our future campaigns so that the views and experience of people and organisations outside the department play a fuller part in what we design for customers. We are already in contact with a number of interested parties and I expect many more to contact us with their views before we finalise the design of the VAT initiative.
“This will be the model for all our future campaigns and we look forward to being even more open about the compliance activity HMRC is undertaking to ensure we reduce the tax gap and help customers pay what they owe.”
The VAT threshold is currently £73,000 turnover on a rolling annual basis. In previous years, it was:
2006/07 - £61,000
2007/08 - £64,000
2008/09 - £67,000
2009/10 - £68,000
2010/11 - £70,000
Where significant underpayment has been identified, the campaign will aim to reduce the tax gap following those who have been non compliant in putting their records in order in the given time frames and assistance provided. HMRC has raised over £500m from voluntary disclosures and a further £100m from follow up activity.
HMRC has proven to move with the times, using new technology and legislation with each campaign it implements, gathering and analysing data retrieved to highlight people to be brought forward. Such people in the past have been medical professional, offshore investors and plumbing personnel.
