HMRC has launched a consultation on the introduction of a new penalty for those participating in VAT fraud. The consultation proposes the introduction of a fixed penalty of 30% of any VAT which ought to have been paid but for the fraud, applying to anyone who “knows or ought to have known” that the transactions they were party to were part of a fraud on the VAT system.

Comments on the proposals are requested by 11 November 2016.

The consultation document can be found here.