Value added tax (VAT) is a consumption charged on goods and services provided commercially and is borne by the end consumer. However, tax is also charged on all goods and services provided to businesses, and suppliers are ultimately liable for the tax.

A person or organisation is required to be registered for VAT purposes if the amount of their taxable supplies exceeds £85,000. Late VAT payments to HMRC can incur penalties based on a percentage of the business’ turnover. It is important to seek legal advice urgently to avoid accruing multiple late penalties and interest.

Further, persistent VAT evasion is a serious form of tax fraud and can result in potential criminal charges. HMRC can also issue a winding up petition that could force a company into liquidation.

Our experienced regulatory and criminal lawyers at Nicholls & Nicholls can provide advice and assistance to businesses facing criminal prosecutions or investigations by HMRC into regulatory breaches in relation to VAT.