HMRC consults on vehicle VAT evasion

Date: 1/6/2011

HM Revenue and Customs (HMRC) has begun to consult on a proposed online system that could help stop individuals evading VAT payments on any vehicles they bring into the UK.

It is hoped development of the new initiative will begin in 2013 and will ensure that no one is able to register their motor through the Driver and Vehicle Licensing Agency (DVLA) if the car or van has not been notified online.

In addition, the owner must have either paid the VAT or HMRC should have confidence they will pay the levy before the registration goes ahead.

HMRC is now seeking the views of anyone who brings vehicles into the UK from abroad in either a business or personal capacity.

David Gauke, Exchequer Secretary to the Treasury, says: "This new online process will stop [criminals] in their tracks and put an end to opportunities for this fraudulent activity. This will deliver an additional £125 million in the first full year."

Last week, the DVLA warned motorists to ensure their vehicles had up to date insurance ahead of the Continuous Insurance Enforcement law being put into effect on June 20th.

Under the statute, it will be an offence not only to drive a motor that is not covered, but also to keep one.

Posted by Mary Treen