Posted on Jul 15, 2011 by Steve Chamberlain| Comments (0)
This week, HMRC has launched details of an ”initiative” for businesses with turnover above the VAT threshold of £73k but are not VAT registered to declare their unpaid taxes.
The promise is that coming forward will result in slightly reduced penalties, for the majority this will be 10% or less – plus any absence of tax.
An expected 40,000 small businesses will receive warning letters over the next few weeks which will invite them to admit their underpayments.
The initiative will run until 30 September, after which time those who did not come forward and are subsequently caught could face larger fines and possibly criminal charges. To take advantage of HMRC’s reduced 10% penalties, businesses must first register their interest, then provide HMRC with details of VAT owed by 31st December 2011. HMRC indicate that they will entertain reasonable “Time to Pay” offers.
HMRC are also asking for those considering a declaration of underpaid VAT to consider other areas of taxation where they may have fallen short on liabilities. Discounted penalty fees in relation to taxes other than VAT have not been publicized.
Critchleys can offer advice to clients who feel that they may have unpaid VAT and other taxes, call me on 01865 261100 to discuss further.