Vince Cable in tax return blunder

Date: 26th October 2011

Business secretary Vince Cable has been forced to pay £15,000 in back taxes and fined £500 for failing to register for or pay VAT.

The news highlights the need for businesses and individuals to keep on top of their records and ensure their tax affairs are in order.

Dr Cable's fine came about after the MP failed to register for VAT in relation to his media actives, The Sun reported.

This led to the business secretary owing HM Revenue & Customs (HMRC) £15,000 in unpaid taxes.

The MP's accountants said the oversight came to light when preparing Dr Cable's 2009-10 Self Assessment tax return.

"When it became clear Dr Cable's earnings had breached the level at which VAT was payable, an offer to settle immediately and in full was made to HMRC and this was duly accepted," the firm told The Sun.

"The matter was dealt with within a month of the Revenue being informed in the first instance and is now closed."

Despite the insistence that the matter was dealt with in a timely fashion it will be seen as an embarrassing gaffe on the business secretary's behalf.

Posted by Emily Smith