Keeping track of your VAT and submitting your return in easy (and free) with Liquid Accounts
HMRC’s latest tax amnesty, the VAT Initiative Campaign, comes to an end on 30th September. If you think you should have been registered for VAT before now, this gives you a chance to come clean, and get things straight without receiving a huge penalty. The current VAT threshold for this financial year is a turnover of £73,000, and you must register within 30 days of expecting to exceed that figure.
As part of the campaign you must register for VAT (by 30th December), tell HMRC about the VAT you think you owe and any other income and tax that you haven’t told them about (by 30th September), and come to an agreement with them for paying what you owe.
In addition you have to then submit your VAT returns online by the due date.
The good news is that as a Liquid Accounts customer managing your VAT and submitting your tax returns couldn’t be easier. Our free VAT module (which can be turned on at any time) automatically works out your VAT for you, generates your return and files it online with HMRC. We are registered with HMRC for online VAT filing and our software on the approved list on their website.
For further details of how to file you VAT return online from with Liquid Accounts see our August Top Tip.
For further information on the VAT Initiative Campaign read this guide from the HMRC.
This campaign is the latest in a series of HMRC crack-downs designed to stop tax evasion and recoup unpaid taxes for the treasury. 600 plumbers came forward earlier this year (and 5 were arrested) and they have until the end of this month to pay any unpaid taxes and penalties.
Other current campaigns involve ‘high risk trades’ such as private tutors and coaches (including those teaching music, academic, fitness, dance, and lifestyle), online traders, and trades people (other than plumbers). Medical professionals have been previously targeted.
HMRC says that they will use ‘web robots’ to look for anomalies in business relationships, bank interest, property income and lifestyle in order to pinpoint people who they don’t think are paying the right amount of tax .
So far more than £500m has been raised from voluntary disclosures and a further £100m from follow-up activity.
Sign-up now for Liquid Accounts, using our Reseller Code “VAT01” for a 90-day FREE trial and you can make sure you keep track of how much tax you need to pay and can pay it promptly.