§ Mr. ToddTo ask the Chancellor of the Exchequer what evidence he has obtained of non-charging of VAT by businesses whose potential VAT receipts are of a scale which would oblige VAT registration. [70788]
§ Dawn PrimaroloFirst, I must make it clear that only those traders whose taxable turnover exceeds £50,000 are required to register for VAT.
The Government are very concerned about those traders who under-declare their true takings to avoid paying VAT or to avoid VAT registrations. Additional staff are being devoted to this work to counter fraud, avoidance and non-compliance. Within the UK there are now 135 outfield staff deployed regionally in Shadow Economy Teams whose prime function is to tackle traders fraudulently avoiding paying VAT, including failing to register for VAT. An additional objective of this activity is to provide a level playing field for the legitimate trade. The teams also liaise with and work closely with other Government Departments.
This year these teams have identified 2,5901 unregistered traders who should have been registered and an additional £17.1 million' revenue.
I To 30 November 1998: latest figures available for 1998–99.