At present, the VAT threshold is £73,000 turnover and increases on an annual basis.
HMRC are working on streamlining and simplifying the process under which tax compliance checks are conducted. The aim is create a single compliance process, to prevent lengthy and expensive inspections. At the minute businesses receive several consecutive visits from inspectors over a number of months in order to assess a number of taxes.
Businesses that appear at risk of lapsing on the payment of one tax would be examined for a complete range of taxes, such as corporation tax, VAT, PAYE and income tax.
The trials of the scheme will run for 6 months from 1 June in 10 different locations across the UK: Reading, Slough, Newcastle, Warrington, York, Exeter, London Euston, Southampton, Cardiff, Belfast, Edinburgh and Dundee.
If the pilot scheme to prove successful, the intention is to roll out the process on a national basis as from January 2012.
To find more about VAT registration and the changes to tax checks please contact us here at M.B. McGrady & Co.