Source: BBC News, & NAO 2nd July 2013
HM Revenue and Customs (HMRC) has been urged to show “more urgency” in how it deals with VAT fraud and tax losses arising out of online trading. A National Audit Office report found £32bn of tax was uncollected in 2010, including an estimated £9.6bn in VAT.
Labour MP Margaret Hodge said such a gap was “startling” and the agency’s response to the challenge presented by the digital economy was too slow.
“The NAO recommends HMRC considers the costs and benefits of enhanced risk profiling of VAT payment returns, and also recommends that HMRC increase the urgency with which it is responding to the fraud risks posed by internet traders.” The full report can be found here.