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.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states