Intentional evasion of VAT is a criminal offence under section 72(1) of the Value Added Tax Act 1994. It is a serious offence carrying a possible prison sentence of 7 years.
Are there any exceptions to VAT?
If you sell mainly or only zero-rated items, you can apply for an exemption from VAT registration. If you are exempt from registration you will not be able to reclaim any VAT.
What happens if I avoid tax?
If HM Revenue and Customs finds out that you have not declared income on which tax is due, you may be charged interest and penalties on top of any tax bill, and in more serious cases there is even a risk of prosecution and imprisonment.
Do you have to give name to report VAT fraud?
You can report someone to HM Revenue and Customs ( HMRC) if you think they’re committing VAT fraud – you do not have to give your name. You can report VAT fraud online. For your own safety, do not:
How can I get help with VAT in the UK?
Phone lines are less busy between 8.30am and 11am, Monday to Friday. You can use NGT text relay if you cannot hear or speak on the phone: dial 18001 then 0300 200 3100. Contact the VAT Online Services Helpdesk if you need help using or registering for VAT online services.
Can a tax adviser talk to you about VAT?
Advisers can only talk to you about VAT, Making Tax Digital for VAT or using VAT online services. They will not be able to transfer you to another webchat team. Webchat is unavailable at the moment because of technical problems. Webchat is closed at the moment. All webchat advisers are busy at the moment. Advisers are available to chat.
Do you have to report VAT errors to HMRC?
You must report any errors that do not meet these conditions to HM Revenue and Customs (HMRC). You can adjust your next VAT Return if the net value of the errors is £10,000 or less. You can also adjust your next VAT Return if your error amount is up to 1% of your box 6 figure (up to a maximum of £50,000).
