HMRC targeting businesses that trade above the VAT registration limit

HMRC targeting businesses that trade above the VAT registration limit

HMRC has published a press release in which it has announced a compaign to target businesses that have turnover above the registration limit which have failed to register for VAT. HMRC will use information to which it already has access, e.g. direct tax data, to assist in its search for such businesses, as well as other means.

HMRC intends to invite such businesses to voluntarily register during the campaign and is likely to offer a reduced penalty over that usually applied for late registration. For late registration the penalty is a percentage of the amount of VAT due from the date from which registration started to the date on which HMRC was notified. The longer the delay the higher the penalty. Although the penalty might be reduced there is no guarantee, and it is still likely to be on a sliding scale.

If you are trading above the registration limit and have yet to register for VAT, you need to take action sooner rather than later because the longer you wait the bigger the penalty you will have to pay.

For more information on registration limits visit my VAT Registration Limits page.

If you need help deciding whether you must register for VAT, ask your accountant or find a local VAT specialist to advise you.

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