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HMRC have launched a consultation that seeks views on changes to VAT law. The potential alterations would clarify the assistance available to VAT-registered businesses that are required to file their returns online but have difficulty doing so.
HMRC have launched a consultation that seeks views on changes to VAT law. The potential alterations would clarify the assistance available to VAT-registered businesses that are required to file their returns online but have difficulty doing so.
The move follows the First-tier Tribunal decision in LH Bishop Electric Co Ltd and others (TC2910), in which where the judge held that the European Convention on Human Rights was breached by VAT Regulations 1995’s failure to take account of a person’s inability to comply on account of age, disability, computer illiteracy, or remoteness of location.
The Revenue intends to review the VAT Regulations 1995 to ensure they provide a means for all registered businesses – except the very small number that are exempt – to file returns by approved electronic resources.
The department will publish guidance that sets out what firms should do if they have difficulty submitting digital returns, the circumstances in which the taxman will consider allowing filing by telephone, and the process to be followed by businesses that believe they need to use the older method.
A revamp is planned for the filing-by-telephone service to ensure it meets the needs of taxpayer firms.
Responses to the consultation document should be sent no later than 14 February 2014 by email or post to John Bryning, HMRC, Indirect Tax Process Team, 1st Floor, Regian House, James Street, Liverpool L75 1AD.
