The amnesty was aimed at the estimated 40,000 businesses that had not registered for VAT by the end of September last year, but as of December, only 841 had come forward.
HMRC has warned that those who have ignored the letters sent out in July face “substantial penalties and criminal prosecution”, with small business owners and sole traders being targeted this month.
Marian Wilson, head of campaigns at HMRC said that the Department has been “identifying people and companies” and that the 40,000 letters were a “gentle reminder” that companies with an annual turnover of more than £73,000 must register for VAT.
However, they deny being disheartened by the low take up from their reminders, saying: “We don't particularly regard the uptake as low. Not all of them will have gone over the threshold - we weren't expecting 40,000 to register.”
And in another move to claw back tax, it has been reported that HMRC is interviewing finance directors at some of the UK’s richest football clubs to find out whether players are recording all their benefits.
It is well known that players receive free holidays, luxury accommodation and other gifts and these are being checked against tax returns to see whether players could be liable for any unpaid tax.
However, HMRC said that it would not “discuss individual cases under any circumstances,” with a spokesman adding:
"For benefits in kind, the basic rule is that if an employer provides an employee with anything other than pay, it may count as an expense or benefit, and they will need to check whether they need to report it to HMRC and pay any tax or National Insurance contributions”.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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