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VAT evasion clampdown

VAT evasion clampdown
Wednesday, December 27, 2017

Lots of changes are coming next year with a clampdown on VAT evasion by HMRC.


These are some of the things to look out for:


Missing trader in construction


HMRC are planning to consult on ways they can tackle missing trader VAT fraud in the construction industry.


How missing trader fraud works is that a trader will send a VAT invoice to a company, be paid on it, but disappear before sending the due VAT to HMRC.


The current favourite consideration is to operate a self-billing system where the recipient of the labour self-accounts for VAT.


Similar schemes are in operation for mobile phone and computer chip trading.


VAT evasion by sellers on Amazon, eBay, and other online platforms


Many VAT-registered UK traders have long complained that they are being undercut by overseas and domestic black-market sellers who don’t account for VAT on their sales.


Many overseas sellers are believed to be warehousing their products in the UK and selling them via these online platforms without VAT applied.


The government are extending the powers open to HMRC to hold Amazon, eBay, and so on jointly and severally liable for unpaid VAT.


One power HMRC are seeking is the ability to ask overseas sellers for financial security for the right to sell goods into the UK.


If you register your business to sell on an online platform, expect to be asked for your VAT number when you apply to join at some point next year.


VAT split payment method proposal


Of all the VAT evasion proposals, this is perhaps the most dramatic.


With split-payment, the output VAT (that’s the VAT you charge customers) would be deducted at source by your payment provider (for example, PayPal) and then the money would be passed direct to HMRC.


This has got the potential to present significant cashflow challenges to UK-based businesses who will, of course, pay input VAT on the supplies they buy in to make for sale. They will be able to claim the input VAT back but they will not benefit from having the output VAT in their bank account in the meantime.


According to industry sources, the split payment method would actually be a violation of the European VAT directive meaning that it would require the approval of the European Commission. No-one is expecting any resistance though to the proposal to be put up by the European Commission on this, if requested.


Other tax evasion news


The countdown is on for the Requirement to Correct deadline.


We’ll be reporting on that during our first week of 2018. This is an HMRC campaign with a lot of teeth and, if you have investments or income from overseas, it’s something you need to be aware of and something it’s best if you speak with one of our team about.


Have you ever heard of HMRC’s Card Transaction Program?


Not many people have but with HMRC’s new super snooper computer, it’s a campaign that’s going to cause misery to a lot of people as it gives the taxman the power to look back over the last 20 years for undisclosed income.


That’s something else we’ll be covering in the Panthera blog in January.


Happy New Year


2018 is going to be a busy year but it’s going to be a great year for Panthera’s brilliant clients.


Thanks for choosing us over everybody else in 2017 – it means the world to us.


Happy New Year from Tory and the team 😊

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

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