Registered businesses which have a turnover of £100,000.00 or below will soon be required to file VAT returns on-line. This is a part of a four year plan to roll out a complete web based tax filing system.
It is estimated that this step will save HMRC close to £235 million, reducing running costs by 25 percent. The Audit office estimates HMRC’s running costs to be around £3.6 billion and the four year plan will reduce this cost by around £1.6 billion.
It is our view that on one hand on-line tax submissions will ease the filing process in many ways but on the other hand some businesses may not prefer it due to data protection issues. Therefore, on-line filing should be provided as an option alongside the paper based system.
Our Tax Disputes professionals are available to give information and advice for businesses that intend to file taxes on-line. To contact one of our specialist VAT Lawyers please click here or call 02071830529.