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SMEs pushed by HMRC to be more digital

16 August 2011
Issue: 4317 / Categories: News , Admin , VAT
Two condocs set out plans for VAT and registrations

HMRC have published two consultation documents that cover the potential mandating of small and medium sized enterprises’ (SMEs) digital dealings with the tax authorities.

VAT: Consultation on the Next Steps for Moving VAT Online covers changes to the operation of VAT to move further transactions online, and the assistance into digital that will support the moves.

The Revenue proposes that from 1 April 2012, for VAT-registered businesses with a turnover below £100,000, it will be compulsory to file returns online and make electronic payment of tax due.

It is also proposed that online will become the default channel for all businesses for VAT registration, deregistration and changes to registered details, although these will not be mandated at this stage.

Given that many businesses will need help in moving online, the condoc asks for views on where digital assistance may be required, and what forms that assistance should take.

The second consultation, Digital by Default, introduces the registration wizard to be created by HMRC.

It will be the digital by default channel that SMEs use to set themselves up for corporation tax, income tax self assessment and PAYE.

The taxman's plan is to develop a one-click programme of work to accelerate the move to delivery of services through online channels.

The condoc also offers the opportunity to comment on other areas:

  • Should the XBRL minimum tagging list be extended beyond 2013?
  • Small repayments of corporation tax: should those under a certain amount be deferred unless specifically requested to be repaid or the company had provided bank details so it could be made electronically?
  • How can HMRC improve their service on ceasing businesses for income tax and PAYE.
  • Should new businesses have to supply an email addresses as part of its designatory data?

Both consultations end on 31 October 2011.

Issue: 4317 / Categories: News , Admin , VAT
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