Launched on the 5th of July, the new initiative targets firms trading above the current value-added tax (VAT) threshold that have not registered for the tax.
The UK VAT threshold was recently increased by £3,000 for the 2011/2012 financial year. So it is now compulsory for businesses with an annual turnover of £73,000 or more to register and pay their VAT.
The HMRC are due to send out an estimated 40,000 letters informing tax evaders how they can register their interest in the new VAT scheme. Those wishing to declare their unpaid tax are able to come forward at any time before the September 30 deadline.
Those who fail to take part in the new VAT scheme could be facing penalties of up to 100% of all outstanding VAT. Whereas companies that make a full voluntary disclosure will only be required to pay 10% of any tax they’ve accrued over the VAT threshold.
Commenting on the scheme, HMRC’s Director of Risk and Intelligence, Mike Wells, said:
“Our campaigns are designed to ensure tax is paid so that the money is available to spend on public services used by everyone. 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 tax owed.”
Once the September 30 deadline has passed, HMRC will follow up with tax enquiries and VAT investigations wherever possible.
Kevin Kinsella Jnr of KinsellaTax says “this is one of many tax incentive schemes offered by HMRC which frankly, does not live up to HMRC’s expectations”.
If you have been suspected or have committedVAT fraud, you must seek professional advice from a tax investigation expert like KinsellaTax immediately.
Our tax experts are on the other end of the phone 24 HOURS A DAY and are here to battle with HMRC on your behalf.
Speak to our VAT Investigation specialists SOONER rather than later on 0800 471 4546.