40,000 individuals and businesses with a turnover above the VAT threshold that are not registered for VAT can expect to receive a letter from HMRC in the next few weeks.
The purpose of the letter is to inform people how to sort out their VAT affairs.
This initiative, launched by HMRC, will inform businesses that they can register for VAT and will be able to take advantage of a 10% penalty rate if a disclosure is made by 30thSeptember 2011. Any other tax liabilities that are disclosed will also be subject to a lower penalty.
After 30 September 2011 HMRC intend to investigate businesses it believes were subject to VAT with the threat of substantially increased penalties and criminal prosecution in the most serious cases.
WHY SHOULD PEOPLE COME FORWARD NOW?
The main incentives to come forward are:
- the reduced penalty payable on the VAT and tax paid late, irrespective of the extent of the VAT and/or tax paid late;
- the simplified and stream-lined process for making a disclosure; and
- avoiding an intrusive investigation by HMRC into the business and its VAT and tax affairs.
HOW CAN GABELLE HELP?
We specialise in tax and VAT investigations and are experienced in achieving the best possible results for our clients in all types of investigations, enquiries and voluntary disclosure initiatives such as the HMRC VAT Initiative.
Please contact John Hood on 020 7182 4747 or your normal Gabelle contact to see how we can help.