WHAT ARE THE BENEFITS OF SETTLING WITH HMRC NOW?
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HMRC is encouraging people to settle any unpaid VAT for the past; it also wants to ensure that going forward, businesses continue to be compliant, file their returns and pay any VAT due on time. But there are also a number of benefits to be gained from registering for the VAT initiative. If HMRC investigates a business, the maximum penalty payable can be up to 100% of the VAT due. However, under the initiative, the penalty is only 10% of the VAT due. With good advice, in some cases, there may be no penalty to pay. However, to ensure that businesses can use the benefits of the initiative they need to: ● Notify HMRC that they wish to participate by 30 September 2011; ● Register for VAT and keep their tax affairs up to date; ● Disclose the unpaid VAT and any other taxes by 31 December 2011; and ● Pay the overall amount owed.