VAT registered businesses that are not up to date with their VAT submissions or payments have until the end of February 2013 to get their house in order. HMRC has launched “The VAT Outstanding Returns Campaign” to give these errant businesses an opportunity to address their past mistakes.
The campaign is aimed at VAT registered businesses with one or more VAT return still outstanding. Participants in the campaign have until 28February to submit all late returns and make their VAT payment. The submission of a paper VAT return is no longer an option for any business. Therefore all outstanding VAT returns must be filed electronically. Businesses who fail to meet the deadline date can expect to be hauled over the coals by HMRC.
Businesses should be mindful that HMRC have the powers to undertake checks into their tax affairs or use legal powers to get detailed information about their finances. Furthermore, unpaid VAT has penalties attached. The penalty for HMRC tracking you down can rise to 100% of the unpaid VAT. Businesses in arrears or missing VAT returns can avoid further penalties and act now.
David Frederick
Principal Marcus Bishop Associates
