16 November 2009

Ochil & South Perthshire MP Gordon Banks has urged the Government to proceed with caution when introducing paperless VAT returns in March

VAT returns will be paperless from 1 April 2010  for all VAT registered  businesses with an annual net turnover of £100,000 or more.  Companies will have to submit VAT returns online and make electronic payments. The same applies to all newly VAT registered companies irrespective of turnover.

The MP raised concerns about the implementation of these proposals with Treasury Minister Stephen Timms last week in the House of Commons after receiving representation from constituents who see the introduction of paperless vat filing as a cost not a saving. 

The Minister gave an assurance that proposals were consulted upon and a report was due shortly.

Mr Banks said – “I appreciate the need for efficiency and cost savings therefore I support the Government’s proposals to go paperless.  However there has to be a recognition that not all businesses, especially those with small turnovers, operate an IT system and have the required knowledge to use it.”

“Perhaps it may be prudent to put on hold these proposals or even examine the possibility of raising the turnover threshold to ensure that our smaller companies or individual traders are not left disadvantaged.”