Don’t give VAT the silent treatment

Don’t give VAT the silent treatment

Many companies view VAT as being a complex tax to deal with and in some cases do not make the necessary precautions to ensure that VAT is calculated and paid properly or try to deliberately pay the incorrect amount of VAT. Many believe that they won’t get caught or feel they do not have the ‘time’ to deal with VAT and that it doesn’t really matter. This however is not true, HMRC announced earlier this year that they were implementing a VAT taskforce in order to deal with companies and individuals who are non-compliant and more and more are getting caught every day.

Recent cases have highlighted the risks of not dealing with VAT properly when, in a commercial property transaction, the parties involved did not discuss the VAT properly and a year after the transaction went through HMRC found the seller liable for VAT and they got charged £23,000 on the sale of a property only worth £130,000. If the VAT is not properly taken into account in the sale contract, then the seller is liable for 20% of the purchase. However hefty fines are not the only side effect.

For further information please visit:
http://talkingpropertylaw.gateleyuk.com/2014/10/21/dont-give-vat-the-silent-treatment/

Naming and Shaming

The taxman has significantly scaled up fines for those defaulting on tax debts and, since 2010, HMRC have had the power to publish the name, address or other identifying details of tax payers or companies that they have had to carry out investigations and charge penalties for deliberate defaults involving tax of more than £25,000. This means that not only is the companies name and reputation put at risk but also the names of any persons deemed liable.

The list consists of everyone from hairdressers, to take-away shop owners to construction businesses, from big corporations to small businesses nobody is safe. HMRC is cracking down harder than ever before on those that owe tax debts. Where taxpayers deliberately underpay, HMRC is seeking a very significant level of penalty. Businesses or individuals need to take advantage of any opportunity HMRC gives them to co-operate on tax irregularities before they get hit by a penalty. Especially as if they do find deliberate fraud or criminal behaviour they can go back as far as 20years or even indefinitely if they deem it necessary, which means you can’t afford to attempt to try and trick the taxman even once.

For further information please visit:
http://www.telegraph.co.uk/finance/personalfinance/tax/10056886/HMRC-names-and-shames-deliberate-defaulters.html

http://www.morningadvertiser.co.uk/Business-Support/Paying-tax-Bending-the-rules-could-prove-costly

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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