HMRC issues VAT warning to businesses

Date: 8th September 2011

Small businesses and individuals operating outside of the UK's VAT rules have been told time is running out for them to come clean.

HM Revenue & Customs (HMRC) has moved to remind those it dubs "VAT cheats" that its lower penalty offer will close at the end of the month.

Under the terms of the campaign, businesses have until September 30th to register for VAT and pay any outstanding money owed.

The scheme is focusing on firms that are operating above the £73,000-turnover threshold but are not registered for VAT.

Those coming forward before the deadline will benefit from a lower penalty of ten per cent of the unpaid sum.

Mike Wells, HMRC's director of risk and intelligence, said: "Most people do register for, and pay, the correct amount of VAT. This isn’t about honest taxpayers, who have nothing to fear from any of our campaigns. But we are committed to ensuring tax is paid so that the maximum is available for public services used by everyone.

"I therefore 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 terms available."

Posted by Jacob Williams