HMRC launches VAT clampdown

Date: 5th July 2011

HM Revenue & Customs (HMRC) has launched a new clampdown aimed at bringing VAT rule-breakers to justice.

The campaign will see the department issue letters to busineses informing them about how they can register in order to pay what they owe.

HMRC said the intended recipients will be individuals and businesses that are not registered for VAT but are operating above the £73,000 turnover threshold.

Mike Wells, HMRC's director of risk and intelligence, commented: "This is our third campaign, raising more than £500 million from voluntary disclosures and a further £100 million so far from follow-up activity.

"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 any tax owed."

Mr Wells urged those who have not yet registered their businesses for VAT to get their tax affairs in order "simply and on the best available terms".

Posted by Emily SMith