HMRC suspects 208 large UK businesses are underpaying on their VAT.
Thomson Reuters explained that the £13.4m figure relates to tax under consideration, which is an estimate of the amount of VAT HMRC believes has gone unpaid prior to full tax investigations being completed – Accounting Web.
HMRC reportedly suspects that 208 of the UK’s largest businesses have underpaid VAT by an average of £13.4m each, according to new analysis by Thomson Reuters.
The firm said this would amount to a total of £2.7bn in VAT that HMRC believes may be owed by big businesses.
Thomson Reuters explained that the £13.4m figure relates to tax under consideration, which is an estimate of the amount of VAT HMRC believes has gone unpaid prior to full tax investigations being completed.
Tackling Tax Fraud
In last year’s autumn Budget, HMRC received an additional £292m to tackle underpayment of tax.
HMRC is likely to believe VAT has been underpaid if:
- A mistake – or an apparent mistake – is made on a company’s tax return
- A large VAT refund claim is made when a business’s turnover is low
- A small amount of VAT is declared when a business’s turnover is high
GET IN TOUCH WITH OUR BUSINESS ACCOUNTANTS IN MANCHESTER TODAY
For peace of mind that your accounting processes are being taken care of give us a call here at Parker Whitwood, Accountants for Small Businesses in Manchester. As a specialist business accountant, we will ensure your accounting is compliant, and your tax returns are completed and paid on time. Leaving you to concentrate on the actual running of your business.