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HMRC targets those who aren't VAT registered.

HMRC is still on its campaign to raise revenue by targetting those who owe taxes.  This time it is VAT that they are focusing on.  The latest campaign, launched on 6th July 2011, focuses on those trading above £73,000 turnover but who have not registered for VAT.

HMRC's website states that "More than 40,000 letters will be sent out over the next few weeks. Under the terms of the VAT Initiative, those who have not registered to pay VAT can come forward any time up to 30 September to tell HMRC that they want to take part. If they make a full disclosure, most face a low penalty rate of 10 per cent on VAT that has been paid late.

They will also be invited to disclose any other tax arrears. Where they have to pay a penalty on undeclared tax other than VAT, this will be lower than the customary penalty of up to 100 per cent charged to those who fall outside the opportunity.

After 30 September, using information pulled together from different sources, HMRC will investigate those who have failed to come forward. Substantial penalties or even criminal prosecution could follow.

For more information, see HMRC Website

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