The campaign to encourage VAT evaders to own up and pay up comes to a close on 30th September.
This has been predominantly targeted at sectors, including construction, business services, hair and beauty, hotels and catering, retail distribution, recreational services, motor vehicle distribution and repair, sanitary domestic services, agriculture and horticulture, property and road haulage.
Under the terms of the VAT Initiative, those who have not registered for VAT but should have done because their turnover exceeds the registration threshold, currently £73k, can come forward any time up to 30th September to inform HMRC they wish to participate in the scheme. If they make a full disclosure they will only be subjected to a lower penalty of 10% on the VAT paid late in addition to the VAT arrears.
Those wishing to register can do so by completing a notification online by visiting here or by contacting HMRC on 0845 600 5217.
Once registered, businesses will have until 31st December to tell HMRC about the VAT due and to make arrangements to pay the VAT and penalties.
VAT defaulters are also being urged to volunteer any other tax arrears, with the persuasion of a lower than normal penalty.
Once the deadline has passed, HMRC will use all its resources to investigate those who fail to hold their hands up with the threat of substantial penalties and even criminal prosecution.
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