Gabelle Tax Analysis: HMRC target outstanding VAT returns
On 9 January 2013, HMRC announced their new “Outstanding VAT Returns” campaign.
This campaign is targeted at VAT registered businesses which have one or more VAT returns outstanding. HMRC states that 50,000 businesses are in this position and warn that such businesses will have their tax affairs closely scrutinised after 28 February 2013.
Businesses with outstanding VAT Returns should submit them and pay any outstanding VAT liabilities before the campaign deadline of 28 February 2013. Failure to do so could result in HMRC imposing higher penalties, as well as increasing the risk that HMRC will conduct a detailed tax investigation.
Alternatively, if the business no longer needs to be registered for VAT, it should apply to HMRC for cancellation of its VAT registration before 28 February 2013.