Businesses that have reached the annual turnover threshold for VAT registration, which is £73,000 for the 2011/12 financial year, but have failed to register with HM Revenue & Customs (HMRC) must act quickly if they want the opportunity to limit hefty fines.
Such businesses have until 31 December, 2011 to register for VAT under HMRC’s VAT Initiative campaign.
The VAT Initiative, which HMRC launched earlier this year, offers VAT rule-breakers lower fines and a special plan to rectify their failure to comply with VAT rules.
HMRC identifying businesses failing to comply with VAT rules
HMRC is currently identifying businesses that have so far failed to come forward. The firms it contacts will be subject to substantially higher penalties and may even face criminal prosecution for their failure to register for VAT.