Munster’s first independent VAT consultancy practice providing specialist VAT and Indirect tax advisory, assurance and interim management support services to owner managed businesses, small & medium enterprises, accountants and legal practices.

UK HM Revenue & Customs to target electricians and online direct sellers

Monday, February 27, 2012

by Nick Ryan

The announcement by HMRC to target the home improvement trades, particularly focusing on electricians, covers all taxes. Also being targeted are businesses/persons trading in the emarketplace or online direct selling. HMRC has confirmed that they will be utilising new technology that will be used to search the internet to find information about e traders who have been identified by preliminary investigations.
The main purpose of these campaigns is to firstly identify those businesses/persons who may have an unpaid tax liability and then provide the business with an opportunity to settle their tax account with HMRC on the best possible terms, the inference being that where a business does not elect to do so then they will be vigorously pursued and higher penalties imposed with possible criminal investigations instigated.
We would recommend that businesses involved in these areas carry out self reviews to ensure they are fully meeting with their compliance obligations.
For further information on the above or for assistance in carrying out self reviews then please contact the VAT Practice.