vat - voluntary disclosure

vat - voluntary disclosure

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My client has aproached hmrc and disclosed the fact that he should have registered for vat in 2009 as he exceeded the threshold. He was given a deadline for submitting vat return and making the payment. It is quite severe as he was not making much profit and ceased trading at the beginning of 2011 anyway. He has just been told he will get a penalty.

Can he do anything to avoid/minimalize the penalty?

I thought HMRC encourages anyone who has unpaid tax to come forward and make a voluntary disclosure, they say it will always be less expensive - is it really?

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chips_at_mattersey
By Les Howard
16th Sep 2011 16:28

Penalty for Failure to Register

If the Client did notify HMRC, then that counts in his favour in terms of any penalty. This will be lower than if HMRC had found out about his failure to register. A letter to HMRC explaining the full circumstances, and any mitigating factors is essential. You cannot assume that they are aware of any of these factors.

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