VAT Registration

New disclosure facility for VAT registration

HM Revenue & Customs (HMRC) has launched a disclosure opportunity to encourage businesses to register for VAT. Under this initiative, businesses trading above the VAT threshold (£73,000 for 2011-12) that have not registered for VAT can settle their VAT liabilities on favourable terms. Businesses that make a full disclosure may pay a low penalty rate of 10% of the late paid VAT. To take advantage of this initiative, your business must:

• Register with HMRC, to notify that you plan to make a voluntary VAT disclosure by 30 September 2011.

• Return your completed VAT registration form to HMRC by 31 December 2011.

You must pay the tax due when you submit your VAT return online, unless you have an agreement in place to pay over a period of time. HMRC has also announced that:

• It will investigate businesses that have not come forward by 30 September 2011.

• Substantial penalties or criminal prosecution could follow.

If you would like to discuss any of the issues raised in this article, please contact our Business Law Team.

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O'Neill Patient Solicitors LLP
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