HMRC will send out more than 40,000 letters over the next few weeks, inviting people who have failed to register for VAT to make a full disclosure and take advantage of a reduced penalty.
HMRC will send out more than 40,000 letters over the next few weeks, inviting people who have failed to register for VAT to make a full disclosure and take advantage of a reduced penalty.
The notification period for the new ‘VAT Initiative’ will end on 30 September and the disclosure deadline will be 31 December. ‘If they make a full disclosure, most face a low penalty rate of 10 per cent on VAT that has been paid late,’ HMRC said.
The recipients will be invited to disclose any other tax arrears. ‘Where they have to pay a penalty on undeclared tax other than VAT, this will be lower than the customary penalty of up to 100% charged to those who fall outside the opportunity.’
HMRC added: ‘After 30 September, using information pulled together from different sources, HMRC will investigate those who have failed to come forward. Substantial penalties or even criminal prosecution could follow.’
Detailed guidance is provided on the HMRC website. ‘Please note that you cannot make your VAT registration online if you wish to take part in the VAT Initiative,’ the guidance says.
HMRC campaigns
This is the fifth in a series of 'HMRC campaigns'. Previous campaigns have targeted:
offshore investments – the Offshore Disclosure Facility (ODF) and the New disclosure Facility (NDO);
medical professionals – the Tax Health Plan; and
people working in the plumbing industry – the Plumbers Tax Safe Plan (PTSP).
HMRC will send out more than 40,000 letters over the next few weeks, inviting people who have failed to register for VAT to make a full disclosure and take advantage of a reduced penalty.
HMRC will send out more than 40,000 letters over the next few weeks, inviting people who have failed to register for VAT to make a full disclosure and take advantage of a reduced penalty.
The notification period for the new ‘VAT Initiative’ will end on 30 September and the disclosure deadline will be 31 December. ‘If they make a full disclosure, most face a low penalty rate of 10 per cent on VAT that has been paid late,’ HMRC said.
The recipients will be invited to disclose any other tax arrears. ‘Where they have to pay a penalty on undeclared tax other than VAT, this will be lower than the customary penalty of up to 100% charged to those who fall outside the opportunity.’
HMRC added: ‘After 30 September, using information pulled together from different sources, HMRC will investigate those who have failed to come forward. Substantial penalties or even criminal prosecution could follow.’
Detailed guidance is provided on the HMRC website. ‘Please note that you cannot make your VAT registration online if you wish to take part in the VAT Initiative,’ the guidance says.
HMRC campaigns
This is the fifth in a series of 'HMRC campaigns'. Previous campaigns have targeted:
offshore investments – the Offshore Disclosure Facility (ODF) and the New disclosure Facility (NDO);
medical professionals – the Tax Health Plan; and
people working in the plumbing industry – the Plumbers Tax Safe Plan (PTSP).
