HMRC’s campaign for businesses trading above the VAT registration threshold – a turnover of £73,000 – who have not registered have until 30 September 2011 to tell HMRC that they want to take part. If they make a full disclosure most will face a low penalty rate of 10% on VAT that has been paid late.

After 30 September 2011 HMRC has stated that it will, using information available, investigate those who have failed to come forward with a threat of substantial penalties and even criminal prosecution could follow.