VAT initiative closes 30 September
HMRC’s VAT initiative closes on 30 September. Under its terms, individuals and businesses which have not registered to pay VAT, when they should have, can come forward any time up to that date to tell HMRC that they want to take part.
If they make a full disclosure and pay any outstanding tax by 31 December, most will face a low penalty rate of 10% on VAT that has been paid late.
After 30 September, using information pulled together from different sources, HMRC intend to investigate those who have failed to come forward.
Substantial penalties and even criminal prosecution could follow.
