HMRC plans VAT crackdown
23rd May 2011
HM Revenue and Customs (HMRC) has said that it will be launching a campaign to target businesses that are trading above the VAT threshold but have not registered for the tax.
The new crackdown is intended to take place later this summer.
The initiative is currently being discussed with "interested parties" so that HMRC has sufficient information in order to go head with the campaign.
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."
At present, the VAT threshold is £73,000 turnover on a rolling annual basis. In 2006/07, it was £61,000; in 2007/08, it was £64,000; in 2008/09, it was £67,000; in 2009/10, it was £68,000; and in 2010/11, it was £70,000.