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Welsh Lib Dems call on HMRC to rethink VAT on-line decision

April 12, 2010 1:33 PM

Welsh Liberal Democrats have taken action in support of the Farmers' Union of Wales' campaign against the recent decision by the HM Revenue & Customs (HMRC), to force small businesses with a turnover of over £100,000 to fill out their monthly or quarterly VAT returns on-line from 1 April this year.

Liberal Democrat MP Roger Williams has tabled an Early Day Motion calling on the HMRC to reconsider the new requirement:

"Yet again we see decisions taken by the Government which adversely effect people in rural areas the most. The Government has failed to provide an adequate and reliable internet service in many parts of my constituency and across Wales. How does the Government and HMRC expect businesses and farmers in rural Wales to complete their VAT returns on-line with such an unreliable internet service?

"Under the Tory Party it would be no better. The Tories seem to want to leave the provision of broadband up to the market to supply the necessary investment, even though we know the market will not deliver to the most rural areas like Brecon & Radnorshire.

"We know from experience that public subsidy has been needed to provide current broadband to much of Mid Wales. But if the Tories get in to power it looks as though the provision of superfast broadband may be delayed for many years or even for ever. The HMRC must change their mind on this decision. The effect on rural businesses will be too costly otherwise."

Montgomeryshire AM Mick Bates has written to the HMRC highlighting the problems this will cause in rural areas:

"The new HMRC requirement will be particularly onerous for businesses with little or no access to the internet, or farmers who may have no internet connection at all in their home. Fast and reliable internet access is simply not a reality in many rural communities in Wales, so it is not fair to penalise businesses if they are late or unable to complete their returns online due to the very poor broadband infrastructure in their area.

"I congratulate the work of the Farmers' Union of Wales in raising awareness of this issue and offering a service at its county offices where staff will file members' VAT returns on-line on their behalf, but a more long-term solution must be found and I hope the HMRC will reconsider this decision."

Responding to concerns faced by many constituents about the new HMRC requirement, North Wales AM Eleanor Burnham said:

"I heartily commend those activists who are campaigning against this demand. Problems with broadband in rural Wales have been exceptionally well-documented and it is unfair to expect farmers to be able to comply. I sincerely hope that the HMRC will now realise the difficulties our farmers face and will revise its requirement accordingly."

Notes:

Early Day Motion

EDM 1202

ONLINE VALUE ADDED TAX RETURNS FOR SMALL BUSINESSES

29.03.2010

Williams, Roger

That this House recognises that many small businesses in rural areas do not have access to broadband; further notes that rolling out broadband to these areas is likely to take some time; and therefore calls on HM Revenue and Customs to reconsider its requirement for businesses with a turnover of over £100,000 to submit their value added tax returns online.

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