The VAT Registration Initiative is the latest HMRC amnesty aimed at traders who are trading above the £73,000 threshold who have not yet registered.
HMRC is offering traders the chance to make a voluntary VAT Disclosure before 30 September in return for reduced Penalties.
In their Press Release last week the HMRC states:
‘Under the terms of the VAT Initiative, those who have not registered to pay VAT can come forward any time up to 30 September to tell HMRC that they want to take part. If they make a full disclosure, most will face a low penalty rate of 10 per cent on VAT that has been paid late’
HMRC says that after 30 September it will use information pulled together from different sources to investigate those who have failed to come forward. Substantial penalties and even criminal prosecution could follow.
What to do next:
To use the VAT Initiative, people and businesses must:
- Register with HMRC by 30 September to “notify” that they plan to make a voluntary VAT disclosure; and
- Tell HMRC about VAT due and make arrangements to pay it, as well as any penalties due, by 31 December.
How to let HMRC know of the intention to make a tax disclosure:
- Online by completing a notification form at www.hmrc.gov.uk/ris/vat/ or
- Ring HMRC on 0845 600 5217
How can HSJ Help?
If you have concerns about your tax affairs why not contact our tax team who will be able to review and advise on your circumstances. You may contact us on Tax@hsj.uk.com or call us on 0845 365 1000.