VAT avoiders now in the taxman's sights

HM Revenue & Customs (HMRC) has launched a new campaign targeting individuals and firms trading above the VAT threshold but not paying the tax.

More than 40,000 letters will be sent out over the coming weeks encouraging anyone not registered for VAT but who is trading above the threshold of 73,000 turnover to come forward. Those making a full disclosure face a reduced penalty of 10 per cent on VAT paid late. Those paying a penalty on other undeclared tax will also get a penalty below the 100 per cent typically charged. The campaign, launched yesterday, follows similar targeting of groups including plumbers, doctors and dentists.