The other important change being introduced by HMRC relates to VAT filing online. HMRC plans to phase out paper filing of VAT Returns so that from 1 April 2010, all VAT registered businesses with an annual turnover of £100,000 or more (excluding VAT) must file their tax returns online and pay electronically.
From 1 April 2010, all businesses newly registering for VAT, whatever their turnover, must file their tax returns online and pay electronically.
The remaining businesses will be able to continue with paper Returns, but this will be reviewed in the following 2 years.
This is going to be an interesting situation for many businesses and perhaps an opportunity for others.