HMRC issued a news release on Friday 20 May 2011 announcing that it is to introduce a campaign targeted at VAT rule breakers.
The aim is to focus on individuals and businesses who are trading above the VAT threshold (currently £73,000), but who have not yet registered for VAT. It is not clear at the moment how HMRC will implement the scheme or how they will chose to investigate those individuals and businesses.
There are late filing penalties for not registering your business on time for vat, and there are also circumstances where individuals can exceed the vat threshold for a short period of time and avoid registration.
If you are at all concerned that this may affect you, please let us know and we can talk you through the process.