Menu
16/12/2004
£1.7bn recouped as UK 'VAT gap' decreases by 3%
The annual report from HM Customs and Excise has revealed that VAT losses have fallen from 15.8% to 12.9% in 2003/04.
This has closed the "VAT gap", the theoretical difference between the possible yield from VAT and the actual receipts received, by nearly 3% and provided an additional £1.7bn of revenue to the exchequer.
The report also highlighted that during the first year of the Customs VAT Compliance Strategy, net VAT receipts had grown by £5.5bn to more than £69bn.
Announcing the publication of the report, Chairman of Customs and Excise David Varney said: "HM Customs and Excise staff have produced impressive results during a time of significant change within the organisation, and with the planned merger with the Inland Revenue and the creation of the Serious Organised Crime Agency (SOCA) on the horizon".
Welcoming the report, Customs Minister Dawn Primarolo said that the reduction in the VAT gap was a "clear sign" that the customs' strategy was helping to reduce losses.
The Minister said: "I am confident that the creation of the HM Revenue and Customs department will help us to build on this success in tackling tax losses and increasing compliance."
The 95th HM Customs and Excise annual report showed:
The report brings together in a single volume the formal accounts, the National Audit Office's report and details on the progress made against targets during the year.
(SP)
This has closed the "VAT gap", the theoretical difference between the possible yield from VAT and the actual receipts received, by nearly 3% and provided an additional £1.7bn of revenue to the exchequer.
The report also highlighted that during the first year of the Customs VAT Compliance Strategy, net VAT receipts had grown by £5.5bn to more than £69bn.
Announcing the publication of the report, Chairman of Customs and Excise David Varney said: "HM Customs and Excise staff have produced impressive results during a time of significant change within the organisation, and with the planned merger with the Inland Revenue and the creation of the Serious Organised Crime Agency (SOCA) on the horizon".
Welcoming the report, Customs Minister Dawn Primarolo said that the reduction in the VAT gap was a "clear sign" that the customs' strategy was helping to reduce losses.
The Minister said: "I am confident that the creation of the HM Revenue and Customs department will help us to build on this success in tackling tax losses and increasing compliance."
The 95th HM Customs and Excise annual report showed:
- Customs collected net revenue of over £115bn, an increase of nearly £7bn on 2002/03;
- In 2003/04 the Customs Tobacco Strategy helped cut the illicit tobacco market share to 15%, helping protect more than £2bn of revenue;
- Missing Trader Intra-Community (MTIC) VAT fraud fell for the second year running to between £1.06bn and £1.73bn, a fall of over 25% since 2002/03;
- Over 5,000 dealers in red diesel and kerosene have been authorised by Customs - tightened controls saw more than 50 applications rejected or approved with conditions;
- Customs intercepted over 23 tonnes of Class A drugs destined for the UK market;
- Customs seized over £36m of suspected criminal cash and obtained confiscation orders to the value of £42m under Proceeds of Crime powers in 2003/04
The report brings together in a single volume the formal accounts, the National Audit Office's report and details on the progress made against targets during the year.
(SP)
Related UK National News Stories
Click here for the latest headlines.
03 June 2003
Tribunal rules against high street tax avoidance scheme
The independent VAT Tribunal today ruled in Customs favour to stop large, high street retailers operating a "major VAT avoidance scheme" and gaining an "unfair competitive advantage" over their smaller competitors. HM Customs and Excise said today that many major retailers have been trying to cut the amount of VAT they pay.
Tribunal rules against high street tax avoidance scheme
The independent VAT Tribunal today ruled in Customs favour to stop large, high street retailers operating a "major VAT avoidance scheme" and gaining an "unfair competitive advantage" over their smaller competitors. HM Customs and Excise said today that many major retailers have been trying to cut the amount of VAT they pay.
03 September 2003
Customs investigate suspected £80m VAT scam
Customs and Excise investigators have arrested two people in Chelmsford and searched business premises across England in connection with a suspected £80 million VAT money laundering scam. A spokesperson for Customs and Excise said that it is believed that money was channelled through the bank accounts of two Chelmsford-based companies.
Customs investigate suspected £80m VAT scam
Customs and Excise investigators have arrested two people in Chelmsford and searched business premises across England in connection with a suspected £80 million VAT money laundering scam. A spokesperson for Customs and Excise said that it is believed that money was channelled through the bank accounts of two Chelmsford-based companies.
22 January 2004
Cash seized during UK-wide Customs raids
Hundreds of thousands of pounds has been seized today after Customs launched a series of raids in northern England, Scotland and Northern Ireland against traders suspected of fraudulent behaviour. Dozens of officers took part in the operation and assets in excess of £320,000 in cash and property have now been seized as enquiries continued today.
Cash seized during UK-wide Customs raids
Hundreds of thousands of pounds has been seized today after Customs launched a series of raids in northern England, Scotland and Northern Ireland against traders suspected of fraudulent behaviour. Dozens of officers took part in the operation and assets in excess of £320,000 in cash and property have now been seized as enquiries continued today.
03 July 2003
Arrests made across UK in massive Customs swoop
In one of the largest VAT fraud operations of its kind, 350 Customs officers swooped on addresses throughout the country - arresting 33 men and four women. More than 70 properties across the UK and Spain were raided this morning as part of 'Operation Euripus'.
Arrests made across UK in massive Customs swoop
In one of the largest VAT fraud operations of its kind, 350 Customs officers swooped on addresses throughout the country - arresting 33 men and four women. More than 70 properties across the UK and Spain were raided this morning as part of 'Operation Euripus'.
16 December 2010
Forum Urges Smaller Firms 'Prepare For VAT Rise'
A business support organisation is warning firms that the January VAT rise could leave them with a new year headache if they fail to prepare properly. All VAT registered traders will be affected by the increase, which will see VAT rise from its current 17.5% rate to 20% at midnight on January 4.
Forum Urges Smaller Firms 'Prepare For VAT Rise'
A business support organisation is warning firms that the January VAT rise could leave them with a new year headache if they fail to prepare properly. All VAT registered traders will be affected by the increase, which will see VAT rise from its current 17.5% rate to 20% at midnight on January 4.
-
Northern Ireland WeatherToday:A mostly cloudy start with scattered showers, the showers becoming more isolated and largely confined to the south this morning. Becoming brighter this afternoon, the best of any sunnier spells across northern counties. Northerly winds easing. Maximum temperature 12 °C.Tonight:A dry evening with late sunny spells and some long clear spells overnight. Becoming cloudier across the north towards dawn with a few showers possible. Touch of frost in south. Minimum temperature 0 °C.
