HMRC’s VAT repayment taskforce is now targeting individuals and businesses in Scotland and Northern Ireland after noticing an increased risk of fraudulent VAT repayment claims in these regions.
HMRC have noticed that businesses are being set up in Scotland and Northern Ireland purely for the purpose of making false VAT repayments claims. The VAT repayment taskforce will visit traders to examine their records and carry out other investigations. This exercise is expected to bring in £7m.
HMRC’s Jennie Granger, director general of enforcement and compliance, said: ‘Deliberately falsifying VAT records can lead to imprisonment. Our message is – do the right thing. If you haven’t already, come clean now. If you don’t, we will find you, investigate you and, not only could you face a heavy fine, but you may face a criminal prosecution as well.’