In today’s spending review it has been announced that £900million has been allocated to HMRC in an attempt to attack tax evasion. It is anticipated that this will generate an additional £7billion in tax. Invariably, VAT evasion will be a key area of the investigations which will be funded by this additional spending. It is to be hoped that businesses which do fraudulently evade VAT are caught and dealt with. However, experience has proved that entirely innocent parties may become involved in such investigations, so it is important that everyone is very careful. The consequences of getting it wrong range from heavy financial penalties to a prison term.
Now is the perfect time for a business to have its VAT procedures reviewed for peace of mind. Spotting errors before the VAT man does is increasingly important.
Additionally, should you be the subject of a VAT inspection or investigation, I cannot urge you enough to contact a VAT specialist as soon as possible. Experience insists that the early involvement of an adviser can avoid or mitigate very unwanted attention. The best defence is to ensure that a business accounts for VAT correctly. “Right Tax, Right Time” has never been so important.
Marcus Ward, VAT Director - Price Bailey Accountants.
