VAT-registered traders who have failed to submit VAT Returns are being offered the opportunity to bring their affairs up to date under a newly launched HMRC campaign. Further newly targeted campaigns are planned for 2013.

The VAT Outstanding Returns campaign is an “opportunity” for businesses to bring VAT Returns and payments up to date. Anyone wishing to take advantage of the terms must complete and submit any outstanding returns by 28 February 2013. HMRC estimate that as many as 50,000 businesses are being targeted as part of the campaign.

HMRC advise that if VAT Returns are still outstanding after 28 February, the relevant person's tax affairs will receive closer attention from HMRC. By way of reminder, virtually all VAT-registered businesses must now submit their VAT Returns online and pay any VAT due electronically.

The campaign is aimed at businesses that are registered for VAT but have one or more returns still outstanding. If a business has underpaid VAT because returns are not up to date, a default surcharge, a penalty, or both may arise in addition to the VAT owed. HMRC advise that by taking advantage of the campaign taxpayers will get the best settlement terms available.

HMRC have also announced that anyone who has ever sold a residential property, other than their main home in the UK or abroad, and not told HMRC about it, will be the subject of a targeted campaign due to start in March 2013. Details on current and future campaigns are available from the HMRC website.