In August HMRC launched the above consultation covering changes to the operation of VAT to move further transactions online, and the assistance into digital to support those moves.

HMRC proposes that from 1 April 2012, for VAT registered businesses with a turnover below £100,000, it will be compulsory to file VAT returns online and make electronic payment of any VAT due.

In support of the Government's ‘Digital by Default’ agenda, online will also become the default channel for all businesses for VAT registration, deregistration and changes to registered details but these will not be mandated at this stage. The consultation also seeks views on where digital assistance may be required, and what forms that assistance should take.

Comments are requested by 31 October 2011 with the consultation document available at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ConsultationDocuments&propertyType=document&columns=1&id=HMCE_PROD1_031508