TaxCorporate TaxDirectors in dark over VAT rules

Directors in dark over VAT rules

Just 14% of tax directors understand new guidance on disclosure rules for VAT avoidance.

Link: Tougher penalties needed to fight VAT fraud

The findings from Big Four firm Deloitte highlight a worrying lack of readiness among UK companies to a regime that could result in serious dents to reputation, should they fall foul of the rules.

Under the Customs & Excise system, businesses with a turnover in excess of £600,000 must disclose if they have any of eight listed schemes. Businesses with a turnover in excess of £10m must also disclose any tax-planning arrangements bearing one of Customs’ ‘hallmarks of avoidance’.

‘The introduction of rules for VAT avoidance schemes is an issue that most medium-to-large UK businesses need to consider immediately,’ said Dennis Knowles, indirect tax partner at Deloitte. He warned that there could be ‘significant reputational damage for those that are unprepared’.

A spokeswoman for Customs said the department was ‘aware of the education aspect’ and was ‘working with policy officials to address’ the problem.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m 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

4m 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

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

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

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

7m 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

8m Alia Shoaib, Reporter