VAT amnesty: what they don't say
HMRC this week officially launched its campaign to target the 40,000 businesses it believes are earning above the £73,000 threshold, but are not registered for VAT.
As AccountingWEB reported in June the latest amnesty initiative is designed to encourage non-payers to disclose what is owed before more severe action is taken against those who refuse to come forward.
If offenders make a full disclosure, most will face a 10% penalty rate on VAT paid late - characterized by PKF partner John Cassidy as a “carrot and stick” approach.
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HMRC Staffing issues
I think HMRC may not have the resources to deal with this issue. A HMRC VAT inspector I spoke to recently expressed concern that they did not have sufficient staff to deal with this latest Government initiative. Perhaps HMRC are expecting just their publicity campain to bring businesses into line.
Malcolm McFarlin
www.mandrtaxadvisers.com