Deadline looms for HMRC VAT Outstanding Returns Campaign 11 February 2013
VAT Outstanding Returns Campaign
The VAT Outstanding Returns campaign is an opportunity for you to bring your VAT Returns and payments up to date. To take advantage of the best possible terms you must complete and submit your returns by 28 February 2013.
If your VAT Returns are still outstanding after 28 February, your tax affairs will receive closer attention from HM Revenue & Customs (HMRC).
Not submitting your VAT Returns is an offence. If you have underpaid VAT because your returns are not up to date, you may have to pay a default surcharge, a penalty, or both on top of the VAT you owe. If you submit your return to HMRC now you will get the best terms available.
Help for smaller businesses
HMRC has introduced a number of accounting schemes to simplify your VAT.
Annual or Cash Accounting
You can use annual or cash accounting if your estimated VAT taxable turnover during the next tax year is not more than £1.35 million.
Flat Rate Scheme
If your VAT taxable turnover is less than £150,000, you could simplify your VAT accounting by calculating your VAT payments as a percentage of your total VAT-inclusive turnover.
What to do if you have paid HMRC but someone has not paid you
If you use standard VAT accounting, you might be able to claim Bad Debt Relief. If you sell VAT taxable goods or services to a customer, you have to pay the VAT element to HMRC. If your customer does not pay some or all of the amount due you can reclaim the VAT you charged and paid to HMRC but did not receive.
Why you should act now
HMRC will be targeting businesses that have been identified as not having made a VAT Return by the due dates. They will compare information from various sources and will target those who should have sent in a return but have failed to do so. HMRC may carry out checks into your tax affairs or use legal powers to get detailed information about your finances.
If you are found to owe VAT you may face higher penalties than if you come forward voluntarily. You may even face a criminal investigation.
When a return is not received, HMRC will estimate what you owe, and so you might pay more than is actually due.
If you would like to discuss your VAT affairs, please contact us at enquires@ahkaccounting.com.
