HM Revenue and Customs (HMRC) has said that it will be launching a campaign to target businesses that are trading above the VAT threshold but have not registered for the tax.
The new crackdown is intended to take place later this summer. The initiative is currently being discussed with ‘interested parties’ so that HMRC has sufficient information in order to proceed with the campaign.
Mike Wells, HMRC’s director of risk and intelligence, said: “This will be the model for all our future campaigns and we look forward to being even more open about the compliance activity HMRC is undertaking to ensure we reduce the tax gap and help customers pay what they owe.”
At present, the VAT threshold is £73,000 turnover on a rolling annual basis. In 2006/07, it was £61,000; in 2007/08, it was £64,000; in 2008/09, it was £67,000; in 2009/10, it was £68,000; and in 2010/11, it was £70,000.
VAT is often one of the more onerous admin burdens that businesses face. We are more than happy to provide all the support your business requires when it come to dealing with the complexities of the tax system.