HMRC have announced that from 9 January 2013 they are embarking on a new campaign to chase up businesses that have one or more VAT returns outstanding. Failure to submit a VAT return is an offence and penalties could be levied on top of any additional VAT that might be due to HMRC. Failure to submit a return or pay in full by the due date can result in a Default Surcharge ranging from 2% to 15% of the unpaid tax. HMRC might also impose Civil Evasion Penalties.
If you know or think you may have a VAT return that is outstanding then the advice is to complete it and submit it online as soon as possible, together with making whatever payment you can with the return. You should also contact HMRC on 0845 302 1435 and explain that you have submitted the return and ask about the possibility of negotiating a Time to Pay arrangement. You will need to explain why you are unable to make full payment. You will also be expected to make a proposal of the timescale over which you will pay off the amount owed.
If you do have an outstanding VAT return and would like further advice, then please get in touch as we may be able to help mitigate the impact of any penalties on your business.
[email protected] or 01772 883881 and ask for Mathew or Kerry