HMRC sets its focus on VAT cheats - Money - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

HMRC sets its focus on VAT cheats

HMRC sets its focus on VAT cheats

Category: Money

Updated: 21/08/2017
First Published: 20/05/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

People and businesses that fiddle their VAT returns are to be targeted by HM Revenue & Customs (HMRC).

The new campaign will home in on individuals and firms who are trading above the VAT threshold but have not yet registered for VAT.

Currently, the threshold for VAT is £73,000 turnover on a rolling annual basis.

In line with other tax campaigns by HMRC, the initiative is likely to invite people to voluntarily disclose their tax affairs in return for no or a lesser penalty.

Those that do not choose to give up their information and start paying VAT that are caught after the campaign face being hit by a far heavier penalty.

Such campaigns have proven to be a success for HMRC, dragging back tens of millions of pounds in previously lost tax revenues.

Such campaigns have targeted offshore investments, medical professionals and people working in the plumbing industry.

They have raised more than £500 million from voluntary disclosures and a further £100 million from follow-up activity.

"Each campaign is aimed at reducing the tax gap by focusing on areas where a significant underpayment has been identified," said HMRC.

"The department provides simple, straightforward opportunities for customers to put their records in order on the best possible terms, followed immediately by activity focused on the non-compliant who choose not to take up the opportunity."

The campaign is to be officially launched later this summer.

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.