News
VAT Fraud warning by HMRC
03 August, 2009
Additional fraud cases on VAT and other taxes are expected to be uncovered by the HMRC, who have warned of ‘future attacks on the VAT base’ despite a push to minimise VAT losses through computer-based carousel fraud.
According to a recent report by the Telegraph this has resulted in a total estimated VAT loss of between £500m and £2bn each year.
The HMRC is confident that it is working towards reducing the current tax credit fraud which is between £1.58bn and £1.84bn.
In a recent interview The Federation of Small Businesses expressed its concern that some companies did not have the necessary accounting systems to reinstate the 2.5% VAT increase at the end of this year.
Businesses could therefore end up paying the incorrect amount of tax and could face penalties.