HMRC has pre-announced its next series of campaigns for 2011/12.
They are targeted at:
For each of the above the main focus is similar to the recent Plumbers Tax Safe Plan; hidden income.
The campaigns work by targeting a population, encouraging them to voluntarily disclose hidden income and to pay over the tax they owe backed up by the threat of higher penalties or prosecution if they try to hide.
Clearly care will be needed when considering the proposed campaigns. For example the basics question is an individual trading?
The badges of trade article in this magazine give a useful starting point to this question.
The next campaign, due to start in the next few weeks, is described as a VAT initiative. This will clearly focus on ‘individuals and businesses who are trading above the VAT threshold but who have not yet registered for VAT’ or who have not paid over the correct amount of VAT.
Businesses close to the registration limit or where desegregation could be questioned should review their compliance.
See the Related Documents section of this page for A guide to Vat registration. You may find it useful to send this guide to clients who are close to the threshold.
VAT initiative
starting June/July 2011
To start in 2011/12
private tutors and coaches, e-markets and a trade
Trades
plumbing Industry - Plumbers Tax Safe Plan (PTSP) started 2011 disclosure by 31 August
Professionals campaigns
Medics Tax Health Plan (THP): started 2010
Offshore Campaign
New disclosure Facility (NDO): start 2009
Offshore Disclosure Facility (ODF): start 2007