Haworths Newsletter :
For some time HMRC has been targeting particular trades which it believes are prone to understating their income. This has proved very successful and now HMRC are extending this method into more general areas.
The first of these are traders who are in arrears with their vat returns.
As you know most vat registered traders must prepare and submit a vat return every quarter.
It is not uncommon to discover traders who fall behind with this statutory duty due to a variety of circumstances.
HMRC is using extra resource to identify those traders who are in arrears with their vat returns and it intends to pursue these arrears with vigour applying penalties according to statute.
This is the stick approach.
There is also a carrot approach.
If you bring your vat affairs up to date by 28.02.13 you will be charged a lower penalty than if you leave it to HMRC to come to you.
So, the message is clear. If you know your vat returns are in arrears, I strongly recommend bringing them up to date by 28.02.13. The chances are you will find HMRC chasing you anyway and all you will gain by leaving this, is a higher penalty.
Naturally, Haworths can help. Our team is large enough to be able to deal with a volume of arrears and we have efficient internal processes which can take your bookkeeping off your hands, if it is just too much to cope with. We even have an online accounting system which includes all your invoicing, produces vat returns and management accounts and allows both you and us to use it in real time. How about that!
Please contact Ian Wood or David Whittaker on 01729 823755 to find out more.