Vince Cable, the Business Secretary and critic of tax avoiders, admits it is a “bit embarrassing” he has become Britain’s first Cabinet Minister to be fined for failure to pay tax.
Top accountants were quite kind about the whole accountancy fiasco and said you can easily be tripped up by Value Added Tax rules and that we all have a lot to learn from the ‘Vince Avoids Tax’ fiasco.
Firstly, it may make sense to negotiate with your tax inspector, given that Mr Cable was fined just £500 after he “unknowingly” omitted to register for £25,000 VAT. This happened when his accountants brought this oversight to his attention and the tax due was paid.
This is the same Mr Cable who only recently declared in a newspaper column that he vowed to chase tax cheats.
“The British government can ill afford to lose tax revenue through large-scale avoidance. An important starting point is to establish a tax base that is robust and fair, in which everyone is seen to be paying their share.”
Owners of flourishing businesses may easily fail to detect when they cross the VAT registration threshold. Presently, should you be making taxable supplies of more than £73,000 per year have to register for VAT .