HMRC clamp down on VAT fraud

HMRC clamp down on VAT fraud

TAX experts are warning of a clampdown by HMRC on penalising businesses which under-declare VAT. At the start of the year HMRC announced they were implementing a VAT fraud taskforce. The current penalty rules for under-declared VAT, in place since 2008, are primarily based on the behaviour leading to the error. HMRC has recruited extra investigators to look into tax evasion and aims to prosecute 1,165 people between now and the end of 2015, up from a target of just 565 over the previous two years. If HMRC finds a VAT error and considers there to have been a lack of reasonable care by the taxpayer, a potential penalty of 30 per cent of the VAT concerned could be imposed, plus interest. Deliberate errors can result in 70 per cent fines, while deliberately concealed errors carry a maximum fine of 100 per cent and a jail term. Previously HMRC have been fairly lenient and mostly imposed the lower fines, but recently they have taken a tougher stance and are enacting the maximum fine. In January HMRC taskforce announced a big clamp down on businesses and fining not only those who are deliberately committing fraud but also those not doing enough to prevent VAT fraud.

Businesses can minimise their penalty risk by ensuring their VAT affairs are in order – before an inspector comes knocking. Which is why it is so important to have a VAT solution, our System Indirect Tax Audit will analyse your existing solution and clearly identify what you have and what is missing but most importantly: propose practical ways in which you can move forward. This will help to spot errors early and also provide a solution to prevent these errors reoccurring in the future, this will save you both time and money.

For further details, visit the links below.

http://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/man-arrested-in-vat-fraud-dodge-crackdown-1065799

http://www.fawcetts.co.uk/businesses-face-vat-crackdown-775/

Laura Stockley
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Laura Stockley

Consultant at eBiz Answers Ltd
Laura graduated from University with a degree in Business Studies, and has been working as an Oracle eBTax consultant for several years now, with both R12 eBTax and Fusion (Oracle Cloud) Tax. Focussing primarily on the tax module and its components, Laura also works on the other financial modules and understands how they integrate with the tax engine. Laura has worked on projects with multiple clients covering all aspects of the tax module including AP, AR and GL, working on everything from design, configuration, testing to support. An excellent communicator, Laura enjoys interacting with end users and relishes the challenge of resolving their issues; making tax an enjoyable experience, always.
Laura Stockley
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