Time is running out to register under the VAT Initiative

Accountants need to be aware that companies wanting to register under HMRC’s VAT initiative only have until the end of this month to do so.

All companies with an annual turnover of more than £73,000 should be registered with the Revenue for VAT. Back in July, HMRC launched the VAT initiative to give companies the chance to settle their outstanding VAT liabilities in return for low penalties.

Businesses had until the 30th September to register their intent to participate in the scheme and take advantage of the benefits it contained. Companies that agreed to take part must now complete the VAT registration process before the end of the year. They will then have to submit an initial VAT return and make arrangements to pay their outstanding tax.

An HMRC spokeswoman said the Revenue has identified people who it believes should have come forward, but haven’t, and they will be investigated shortly after the end of the year.

She went on to say that it was not too late to come clean and avoid the hefty penalties that HMRC will impose if it needs to carry out a lengthy investigation. Anyone who wants to take advantage of this opportunity can contact the Revenue on 0845 600 5217.

Taxpayers are also invited to disclose other tax arrears at the same time. If a penalty is due, this will be less than the normal penalty, which could be as much as 100% of the tax due.

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