Crackdown on VAT fraud continues

HMRC's crackdown on VAT fraud is clearly continuing, with the news that a 59-year-old man from the Aberdeen area has been detained by investigators pursuing a suspected fraud in relation to the VAT Flat Rate Scheme.

According to HMRC, evidence was recovered by investigators with one of its task forces and enquiries are continuing.

The taskforce targets people and companies deliberately misusing the VAT Flat Rate Scheme and VAT self-billing schemes and is set to bring in £5 million, according to HMRC, which also believes that this type of fraud is on the increase.

Taskforces are specialist teams which bring together various HMRC compliance and enforcement teams that undertake intensive bursts of activity in specific high-risk trade sectors and locations in the UK. The teams visit traders to examine their records and carry out other tax investigations.

HMRC says that it has collected more than £100 million as a result of taskforces launched since 2011-12 and expects to bring in over £90 million a year from taskforces launched over the next three years.

HMRC has launched 61 taskforces since 2011. A further 16 are apparently planned for 2013-14 and up to 30 for 2014-15.

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