HMRC announces new VAT proposals

Date: 10th August 2011

A number of small business owners around the UK could be encouraged to seek the assistance of a specialist tax accountancy service following the launch of a new consultation from HM Revenue & Customs (HMRC).

The department is seeking opinions from interested parties on a range of proposals to alter the country's VAT system.

HMRC wants to move an increasing number of functions online and is seeking views on the plans by the end of this month.

A statement from the department explained: "HMRC proposes that … for VAT registered businesses with a turnover below £100,000, it will be compulsory to file VAT returns online and make electronic payment of any VAT due.

"In support of the digital by default agenda, online will also become the default channel for all businesses for VAT registration, deregistration and changes to registered details but these will not be mandated at this stage."

The changes would come into effect from April 1st next year and HMRC has stated that, in line with the government's digital agenda, it is seeking opinions on where help may be needed to make the proposals easier to accommodate.

Posted by Emily Smith