Taxation: UK Treasury forces businesses to use the internet

HM Revenue and Customs has informed all businesses that submit returns for Value Added Tax, one of the most complicated taxes, in operation, anywhere in the world, that it is to cease all paper submissions, notices and payments.

From 1 April 2012, all VAT returns must be filed using HMRC's on-line system. All payments must be made by bank transfer which, in effect, compels most businesses to use on-line or telephone banking.

It is not an entirely new system: already newly-registered businesses, and those with turnovers of more than £100,000, have to file and pay their VAT online. That has been in place since April 2010.

But, as from April, the regime will apply to all businesses regardless of age or turnover, bringing thousands of small businesses into a regime that will require even sole traders to come to grips with a technology that many - especially elderly business people - may have no understanding of.

HMRC say that moving to on-line filing and payments will provide a range of "benefits" to business.

It's not much of a list: returns filed will receive "an automatic acknowledgement," there will be "a handy arithmetic checker to help make sure you’ve done your sums correctly" and every quarter they will receive "an email alert to remind you when your next online return is due."

This last spectacularly generous (1) "benefit," is "(as, after April, HMRC will stop sending out paper returns to customers who are now required to file online)."

(1) sarcasm