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HMRC's crackdown on VAT fraudsters has begun with the issue of thousands of letters to inform businesses how to register to pay the tax they owe.
The Revenue announced in May that it would be launching a campaign focused on traders who are not registered for VAT in spite of earnings in excess of the £73,000 threshold.
More than 40,000 letters will be posted by the taxman over the coming weeks. Under the terms of the initiative, those who have not registered for VAT will be able to approach HMRC any time up to 30 September to say they wish take part.
In most cases, a full disclosure will result in a penalty rate of no more than 10% of the money owed.
Traders who take part in the campaign will be obliged to inform the Revenue about VAT due and make arrangements to pay by 31 December. They will be invited to also admit to other tax arrears, and penalties will be lower than the customary 100% fine charged to those who fall outside the disclosure opportunity.
Tax authorities have warned that, using information pulled together from various sources, they will investigate and possibly prosecute VAT cheats who failed to come forward by 30 September.
HMRC's director of risk and intelligence, Mike Wells, claimed, ‘This is our third campaign, raising more than £500 million from voluntary disclosures and a further £100 million so far from follow-up activity.’
Plumbers and traders who have registered for the plumbers tax safe plan are reminded they have until 31 August to make arrangements to pay all tax, interest and penalties due.
