Partner Article

Mandatory online filing is discriminatory

A court has ruled that the mandatory online filing of VAT returns has breached taxpayers’ human rights.

In our response of October 2011 to HMRC’s consultation on mandatory online filing of VAT returns, we expressed concerns that there weren’t enough safeguards for certain taxpayers.

In particular, we highlighted that the elderly, people with disabilities, limited IT skills and those living in rural areas with little or no reliable access to the internet should be allowed to submit paper VAT returns.

It would appear that our concerns have been vindicated as the First Tier Tax Tribunal has ruled that the lack of alternative means of filing was a breach of the taxpayers’ human rights and unlawful under EU law.

It would therefore seem that the Government’s policy of automated and online filing (including VAT returns, Real Time Information, PAYE and Corporation tax returns) must be applied in a way that’s reasonable for all taxpayers, and addressed on a case by case basis.

While ‘Digital by Default’ may be appropriate for many UK taxpayers, it should not mean mandatory online filing - particularly in circumstances where HMRC has previously recognised that certain groups of ‘customers’ will suffer more difficulties than others.

This was posted in Bdaily's Members' News section by Baker Tilly .