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Taxmen act to stop car import VAT dodge

Taxmen act to stop car import VAT dodge Image

Taxmen are plugging a VAT 'black hole' on illegal car imports which costs the UK 110m a year.

HM Revenue & Customs' (HMRC) new online system will stop criminals evading VAT on road vehicles they bring into the country.

The DVLA can now check HMRC's new online system to make sure the right VAT has been paid on imported vehicles before they are registered for use here.

HMRC said the new system will also simplify the rules for law-abiding users, making it easier to notify tax officials and register vehicles brought into the UK.

Sally Beggs, deputy director for VAT fraud at HMRC, said the new online Notification of Vehicle Arrivals (NOVA) system means people will get DVLA approval only if their vehicle has been notified to HMRC for VAT reasons, adding: "Any attempt to cheat the system will stall."

Ms Beggs said: "Criminal gangs abused the old system in the past by bringing vehicles into the UK and registering them with the DVLA without accounting for VAT. That stops today."

The new system replaces the manual method, where people dealt with HMRC and the DVLA individually.

Insurance  18/04/2013 11:00:01

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