MTIC fraud sees VAT receipts plummet

MTIC fraud sees VAT receipts plummet

Carousel fraud blamed as government suffers first fall in VAT revenues since 1973

The government has suffered its first annual fall in VAT tax revenues for 33
years, data released yesterday revealed. Carousel fraud scams have been blamed
for the drop.

According to official figures, VAT revenues plunged 14% in March this year
compared with the same month last year. Over the full year, VAT takings were
0.2% down at £72.9bn, The Guardian reports.

The fall is particularly alarming given the healthy state of the economy. In
the 1970s two recessions failed to dent VAT revenues.

The new numbers suggest that government has underestimated the effect of
carousel fraud, after forecasting that losses from fraud were less than £2bn per
year. The figures also throw doubt over Gordon Brown’s forecast that VAT
revenues would be up by £800m for the 2005/2006 financial year.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

3m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

3m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

5m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

6m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

6m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

9m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

10m Alia Shoaib, Reporter