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VAT initiative: a reminder

printer Mail

HMRC are reminding VAT ‘rule-breakers’ that they must notify HMRC by 30 September that they plan to make a voluntary disclosure if they wish to take part in the disclosure initiative launched in July.

The campaign is focusing on individuals and businesses operating above the VAT turnover threshold who have not registered.

Target sectors include ‘construction, business services, hair and beauty, hotels and catering, retail distribution, recreational services, motor vehicle distribution and repair, sanitary and domestic services, agriculture and horticulture, property and road haulage’.

Most people who take part ‘will face a low penalty rate of 10%’ on VAT paid late, HMRC said.

‘After 30 September, using information pulled together from different sources, HMRC will investigate those who have failed to come forward. Substantial penalties and even criminal prosecution could follow.’

Detailed guidance is provided on the HMRC website.