The VAT initiative campaign, launched this week, is aimed at businesses that should be VAT registered, but applies equally to anyone who wants to put other tax affairs in order. Read on to find out if you could benefit from the campaign.
The VAT initiative campaign
If your business has a turnover of taxable supplies of £73,000 or more per year you should be VAT registered. If you should be registered but you are not you have until 30 September 2011 to notify HMRC that you want to make a voluntary disclosure and benefit from
- a lower penalty than if HMRC have to enforce your registration.
- in some cases, there will be no penalty charge at all.
- You may be able to spread the payments you have to pay HMRC rather than paying in one lump sum
You then have until 31 December 2011 to return your completed VAT registration form (VAT1) to HMRC. Note that if you want to take part in the VAT initiative you cannot make your VAT registration online.
Campaign applies to any tax errors
Although the campaign targets VAT rule-breakers the beneficial penalty terms apply equally to any tax errors.
The campaign may not offer significantly better settlement terms than if you disclose voluntarily. However those who do not register for VAT before the campaign ends will be at risk of much higher penalties. Given HMRCs use of more sophisticated software and information powers defaulters are also more likely to be caught.
If you do think you need to disclose VAT or tax errors to HMRC, the way you make your disclosure can affect how quickly matters can be resolved and the level of tax and penalties you pay. We know how tax inspectors work, and if you ask us to help we will use this knowledge to resolve matters quickly, achieving the best outcome for you and your business.
If you are concerned about your VAT or tax position, please speak to Adam Lloyd or Julian Millinchamp on 01242 237661.