HMRC will target up to 50,000 businesses that have failed to submit VAT returns with warnings that their tax affairs will be closely scrutinised.
The Revenue warned that if returns remain outstanding after 28 February their tax affairs will attract "greater attention".
The VAT Outstanding Returns campaign will rely on businesses coming forward voluntarily before that date and in return receiving better terms, “as any penalty they pay may be lower than if HMRC comes to them first,” according to a press statement.
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