7 May

Propertymark declines to reveal how much its ‘misdefinition’ VAT cheque cost

first_imgHome » News » Associations & Bodies » Propertymark declines to reveal how much its ‘misdefinition’ VAT cheque cost previous nextAssociations & BodiesPropertymark declines to reveal how much its ‘misdefinition’ VAT cheque costPropertymark says its finances are now on a ‘sure footing’ and that the VAT declaration to HMRC was entirely voluntary.Nigel Lewis21st July 202001,337 Views Propertymark has declined to comment on how much it paid HMRC last year after it was discovered that it significantly under-paid VAT through a ‘mis-definition’ of its liabilities and exemptions over several years.The error was highlighted within its annual accounts published prior to its annual meeting on 1st July, held via Zoom.In the report, on page 14 it says: “The Finance department has undergone a major review of its processes, systems and procedures.“As part of gaining that financial stability we have identified that our tax position was not properly ordered and that has led to a significant payment to HM Revenue and Customs of outstanding VAT which has arisen through mis-definition of our liabilities and exemptions over a number of years.“We are confident that Propertymark’s finances are now on a sure footing.”Membership dipWriting large cheques to HMRC has not come at an ideal time – Propertymark’s annual report warns of likely reductions in membership in the coming months as Covid forces more agents to shut up shop or sell their businesses to competitors.“To ensure financial stability for the future and recognising the potential pressures on Group income the organisation continues to review its operating procedures,” its annual report says.The Negotiator approached Propertymark to ask how large the payment was to HMRC. In response a Propertymark spokesperson said: “The financial accounts were signed off at the AGM and as the Head of Finance said at the AGM, the VAT declaration was an entirely voluntary declaration.”But industry consultant Andrew Stanton says the VAT error is ‘serious’ because “it’s the government who passes acts of law that legislate on how homes are sold and rented in the UK and it takes great store from industry bodies.“As such these bodies should be decent and fit for purpose; if judged by the proposed ROPA guidelines would the NAEA Propertymark fail muster?”.Propertymark earlier this month announced a major restructure of the organisation following the retirement of NAEA chief Mark Hayward.HMRC propertymark VAT July 21, 2020Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more