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
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