Wednesday, 9 January 2013
Late VAT returns will lead to more scrutiny by HMRC
HMRC are continuing with their campaign of targeting certain groups of companies and individuals as a way of collecting the tax due. They have announced, today, that from the 28th February 2013 any company that has not submitted one or more VAT returns will have their affairs closely scrutinized. This is likely to be some 50,000 businesses. These businesses are being given an opportunity to get up to date and pay the tax they owe by 28 February 2013.
Marian Wilson, Head of HMRC Campaigns, said: "If HMRC has sent you a VAT return and you have not yet taken any action, this campaign is a reminder to bring your tax affairs up to date. But time is running out.
"After 28 February, if they have not submitted their outstanding VAT returns and paid what they owe, HMRC will use its legal powers to pursue outstanding returns and any VAT that is unpaid. Penalties, or even criminal investigation, could follow."
Presumably if a business has not submitted a return, as they are worried they cannot afford it, are going to be hit hard if they miss the deadline.
If you think you cant pay VAT and need extra time to pay, then we advise submitting your return prior to the 28th February with a part payment of what you can afford and then getting in touch with us. We have enormous experience of dealing with HMRC and can put together informal time to pay arrangements. When we say "informal" we mean that there is no need to go into an insolvency mechanism such as a CVA or administration to get some extra leeway on the company debts.
This informal deal we call the Plan A approach. Please see our website's following page for more information.