In March 2006, the Lord Carter review
of HMRC’s use of electronic filing was published.
In relation to VAT, he recommended
that there would be a ‘phased mandation’ of electronic filing and
payment of VAT Returns. In other words, there will come a time when
all VAT registered persons will be required to file and pay
From 1 April 2008, all newly
registered businesses, and all existing businesses with turnover
exceeding £5.6million will be required to file and pay
From 1 April 2010, all existing
businesses with turnover exceeding £100,000 will be required to file
and pay electronically.
It is intended that all remaining
businesses will be included by April 2012. Primary legislation is
likely to follow in the 2007 Finance Act. It is intended that a
business will be able to appeal against this insistence; for
example, a business that will only use cash for all payments. It is
expected that such appeals will be few.
Historically, appeals against the
administration of VAT have been unsuccessful.