Penalty for participating in VAT fraud

This consultation, announced at Budget 2016, seeks your views on the introduction of a new penalty for businesses that participate in VAT fraud.

This consultation considers a range of options for a new penalty for those that knew or should have known their transactions were connected with VAT fraud. The consultation explores the case for a new penalty, including the following questions:

• how should the penalty be structured?
• should the new penalty apply to company officers?
• should the new penalty feature reductions in the level of the penalty for co-operating with HMRC?
• should those that participate in VAT fraud be named and shamed?

Responses to the consultation will be summarised and published later in the year. The results of the consultation will be considered and the government will then take a decision on whether to introduce a new penalty.