The current VAT disclosure facility is aimed at traders who exceed the VAT threshold of £73,000 but are not VAT registered.
HMRC are currently sending out more than 40,000 letters outlining details of the disclosure to taxpayers they believe should be VAT registered.
The disclosure is however available to anyone and you do not need to receive a letter to take part.
The benefit of disclosing is that in the majority of cases a full disclosure will result in a penalty rate of no more than 10% of the tax due. It is also possible to disclose tax arrears other than VAT under the scheme, but penalties charged on these are only guaranteed to be under the maximum 100% of tax due.
To take part in the disclosure a trader must notify HMRC of his intentions to disclose by 30 September 2011 and must inform HMRC of the VAT due and make arrangements to pay by 31 December 2011.
If you are interested in the disclosure or if Eaves and Co can be of any assistance, please get in touch.
