TaxCorporate TaxHMRC reissues warning over VAT fraud

HMRC reissues warning over VAT fraud

Tax administration expects additional fraud cases on VAT and other taxes

HM Revenue & Customs has warned of ‘future attacks on the VAT base’
despite a push to minimise VAT losses through computer-based carousel fraud.

The drive has resulted in the total estimated VAT lost fall between £500m and
£2bn a year, according to
telegraph.co.uk

Tax credit fraud is currently between £1.58bn and £1.84bn, and the department
is confident efforts to reduce this figure are working.

The Federation of Small Businesses (FSB) has also expressed concern that some
companies do not have the necessary accounting systems to reinstate the 2.5% VAT
increase at the end of this year.

Accountants argue businesses could pay the incorrect amount of tax and face
being penalised.

Stephen Alambritis, of the FSB, said: ‘Companies will be suffocated by
further red tape as a result of the change and they will face crippling tax
fines if they get their tax wrong.’

Further Reading:

VAT
grouping proposal set to rattle financial services

HMRC
uncovers VAT fraud in carbon trading

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