HMRC forced to retreat over online only VAT returns

*Please note the information in this article may be out of date

Court ruling forces HMRC to make a u-turn on its previous decision to only accept electronic VAT returns.

Wed, 07 May 2014

HMRC has stated it will once again accept telephone, and in some cases, paper VAT returns. The move comes in the wake of a recent court ruling which found that their online only VAT returns policy was an infringement on business's owners human rights. 

Businesses will have to first prove to HMRC that making electronic returns is not feasible for them. Relevant reasons would be age, disability, access to adequate internet connections, etc.

As publicised by listentotaxman back in Jan 2013 (Can God save you from making online VAT returns?), the only reason HMRC would accept paper returns before this was being a member of a religious group which frowned upon the use of technology, or if a business was insolvent.

HMRC has been steadily moving towards online only returns for more and more forms of tax. This move is a significant victory for those business owners who have been campaigning for the removal of the online only VAT return rule for the past two years!

Details of the new HMRC dedicated VAT return phone line should be announced soon.