VAT Registrations

HMRC has launched a concerted new campaign to tackle businesses trading above the VAT threshold but which have not registered for VAT. Individuals and businesses have until 30 September to tell HMRC that they should have been registered. Those that make a full disclosure will normally face a reduced penalty rate of 10% on VAT that has been paid late. More than 40,000 letters are being sent out over the next few weeks to inform businesses how to register to pay what they owe.Businesses must register for VAT if their taxable turnover for the previous 12 months is more than £73,000 or they believe it will exceed this annual threshold in the next 30 days.The clampdown is the latest in a series of HMRC campaigns to recoup unpaid tax. Last month details were published of a campaign to target traders who use e-marketplace sites to buy and sell goods as a trade or business. HMRC also intends to scrutinise the tax affairs of private tutors and coaches who are able to earn additional, and perhaps undeclared income from their expertise.