According to Pinsent Masons, HMRC’s specialist unit targeting the UK’s largest businesses collected an additional £3.38bn in revenue through investigations into underpaid VAT in 2014/15, reflecting a shift by HMRC towards targeting the underpayment of VAT by the largest businesses with the most c
According to Pinsent Masons, HMRC’s specialist unit targeting the UK’s largest businesses collected an additional £3.38bn in revenue through investigations into underpaid VAT in 2014/15, reflecting a shift by HMRC towards targeting the underpayment of VAT by the largest businesses with the most complex tax affairs.
The additional VAT was collected from enquiries undertaken by HMRC’s large business directorate, which was established in April 2014 to ensure the tax compliance of the UK’s 2,100 largest and most complex businesses. In 2014/15, the directorate had 1,960 enquiries into VAT open in total. Recent targets include major overseas e-commerce companies, which HMRC believes do not collect all of the necessary VAT payments from companies using their online marketplace platforms.
Pinsent Masons partner Darren Mellor-Clark said: ‘HMRC appears to consider that the major e-commerce marketplaces may not always police the companies they host on their websites, to ensure that they comply with local tax rules. High street retailers and supermarkets argue that many companies based abroad can undercut their UK competitors by not paying VAT as a result.
‘HMRC is under pressure to stop companies avoiding VAT by selling primarily online, but it can be difficult for HMRC to pursue companies overseas. Attempting to prosecute a foreign company can create its own set of legal challenges – if the amount is small then that becomes a disincentive.’
According to Pinsent Masons, HMRC’s specialist unit targeting the UK’s largest businesses collected an additional £3.38bn in revenue through investigations into underpaid VAT in 2014/15, reflecting a shift by HMRC towards targeting the underpayment of VAT by the largest businesses with the most c
According to Pinsent Masons, HMRC’s specialist unit targeting the UK’s largest businesses collected an additional £3.38bn in revenue through investigations into underpaid VAT in 2014/15, reflecting a shift by HMRC towards targeting the underpayment of VAT by the largest businesses with the most complex tax affairs.
The additional VAT was collected from enquiries undertaken by HMRC’s large business directorate, which was established in April 2014 to ensure the tax compliance of the UK’s 2,100 largest and most complex businesses. In 2014/15, the directorate had 1,960 enquiries into VAT open in total. Recent targets include major overseas e-commerce companies, which HMRC believes do not collect all of the necessary VAT payments from companies using their online marketplace platforms.
Pinsent Masons partner Darren Mellor-Clark said: ‘HMRC appears to consider that the major e-commerce marketplaces may not always police the companies they host on their websites, to ensure that they comply with local tax rules. High street retailers and supermarkets argue that many companies based abroad can undercut their UK competitors by not paying VAT as a result.
‘HMRC is under pressure to stop companies avoiding VAT by selling primarily online, but it can be difficult for HMRC to pursue companies overseas. Attempting to prosecute a foreign company can create its own set of legal challenges – if the amount is small then that becomes a disincentive.’
