Scottish Business Insider Group reports that HMRC has outlined its plans to move the business tax system to a fully online service by April 2013.
Two consultation documents were published this week, re moving towards a web-only VAT and tax system for business.
- Digital by Default This consultation considers the next steps in making HMRC’s proposed Registration Wizard the digital by default channel to get set up for the main direct business taxes (Corporation Tax, Income Tax Self Assessment/Class 2 NICs, PAYE). It is part of the 'One Click' programme of work in HMRC to accelerate the move to delivery of services through online channels.
- VAT: consultation on the next steps for moving VAT online This consultation covers changes to the operation of VAT to move further transactions online, and the assistance into digital that will support those moves.
HMRC is attempting to save £235M by these initiatives.
Compulsory online VAT returns will be extended to businesses with a turnover of under £100K by April 2012.
Registering online for other taxes when starting a business will become the default option for all entrepreneurs by April 2013.
Neil Whyte, tax partner with PKF, is quoted:
"Although doing all your tax paperwork online looks set to become the default option, it should never become the only option.
Pushing all tax communication online may save money for HMRC but making it mandatory would spark opposition from those who worry about data security hardly a strong point for the tax authorities in recent years."
Tax does have to be taxing.
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