HM Revenue and Customs
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HMRC targets VAT Cheats

HMRC targets VAT Cheats

News Release issued by the COI News Distribution Service on 20 May 2011

HM Revenue & Customs (HMRC) today announced an initiative to crack down on VAT rule breakers. The new campaign will focus on individuals and businesses who are trading above the VAT threshold but who have not yet registered for VAT.

The initiative is being discussed with interested parties to ensure HMRC has as much information from them as possible before launching the campaign later in the summer.

Mike Wells, HMRC's Director of Risk and Intelligence, said:

“Our aim is to get as much input as possible into our future campaigns so that the views and experience of people and organisations outside the department play a fuller part in what we design for customers.

“We are already in contact with a number of interested parties and I expect many more to contact us with their views before we finalise the design of the VAT initiative.

“This will be the model for all our future campaigns and we look forward to being even more open about the compliance activity HMRC is undertaking to ensure we reduce the tax gap and help customers pay what they owe.”

Each HMRC campaign is aimed at reducing the tax gap by focusing on areas where a significant underpayment has been identified. The department provides simple, straightforward opportunities for customers to put their records in order on the best possible terms, followed immediately by activity focused on the non-compliant who choose not to take up the opportunity. HMRC has raised over £500m from voluntary disclosures and a further £100m so far from follow-up activity.

Previous campaigns have targeted offshore investments, medical professionals and people working in the plumbing industry. For each HMRC has used new technology and legislation to gather and analyse data, from internal and external sources, to identify people who should come forward. This has provided thousands more investigations, now being worked through, including a number of criminal investigations.

To join the VAT Initiative discussion, individuals, organisations or businesses should contact Nicky Prys-Jones (Nicola.j.prys-jones@hmrc.gsi.gov.uk).

Notes to editors

1. The VAT threshold is currently £71,000 turnover on a rolling annual basis. In previous years it was: 2006/07 – £61,000; 2007/08 – £64,000; 2008/09 - £67,000; 2009/10 - £70,000.

2. HMRC encourages anyone who has unpaid tax to come forward and make a voluntary disclosure; it will always be less expensive if customers come to HMRC voluntarily rather than wait until we catch up with them.

3. Anyone working in the plumbing industry who has unpaid tax should contact HMRC on 0845 600 4507 before 31 May to register their intention to use the Plumbers Tax Safe Plan (http://www.hmrc.gov.uk/trades-disclosure/index.htm).

4. Anybody targeted by a previous campaign will not be able to use a subsequent campaign to disclose liabilities.

5. Summary information on existing and future campaigns activity will be available shortly on the HMRC website.

6. Follow HMRC on Twitter @HMRCgovuk.

NAT 44/11

Issued by HM Revenue & Customs Press Office
Press enquiries only please contact:

Contacts:

HM Revenue and Customs Press Office
HMRC-Press-office.NDSmanagement@hmrc.gsi.gov.uk

Jan Marszewski
Phone: 020 7147 0798
jan.marszewski@hmrc.gsi.gov.uk

HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk

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