Evading VAT on cars brought into the UK

Evading VAT on cars brought into the UK

It seems that there are some people who are avoiding paying VAT on vehicles they bring into the UK. The issue only affects vehicles that are brought into the UK permanently. Vehicles that are in the UK temporarily have no need to be registered with the DVLA and any VAT due paid to HMRC.

Under the current system it is possible for vehicles to be registered with the DVLA without paying any VAT due to HMRC. This is to be addressed in a joint initiative between HMRC and the DVLA which will result in a new online system being set up.

HMRC and the DVLA have indicated they will be issuing a consultation document on this by the end of May 2011. So if you have any views on the matter respond to the consultation.

The proposal is to have the online system in place by early 2013. The new system is expected to reduce the number of vehicles that remain permanently in the UK without registering with the DVLA or paying VAT.

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