HMRC targets non-payers of VAT

HMRC targets non-payers of VAT

Dec 4, 2023

HMRC plans a letter campaign to target non-payers of VAT telling them to disclose unpaid tax dating back up to six years

The campaign was originally due to kick off last year but the Chartered Institute of Taxation said ‘the project was placed on hold for a few reasons, including launching penalty reform’.

The targeted letters will be sent to accountants and non-represented individuals advising them that HMRC records show that they have not paid VAT or submitted returns.

If businesses do not send overdue returns and pay any VAT due, HMRC said it will ‘make an assessment for the VAT we estimate is due and ask you to pay that amount. This could be more than what you owe.

‘If you send us a return late, we can also charge you a surcharge or penalties, as well as interest. We can charge different penalties, depending on whether the accounting period starts before or after 1 January 2023.’

Penalties will not be charged if businesses have a reasonable excuse for not sending a return on time. The return must be sent as soon as the reasonable excuse ends