The CLA says mandatory online tax returns will prove impossible in broadband ‘not-spots’

The CLA today (Monday, 30 November) said that HMRC's decision to tell businesses with a turnover of more than £100,000 a year that they can only fill out their tax returns online is "absurd".

CLA President William Worsley said: "With current broadband provision, this will be unworkable for some rural businesses.

"The Government is keen to force people to process important documents such as tax returns online but it has yet to agree to a partnership with internet service providers that would provide cash for broadband to every door in the country. This is yet another example of rural businesses being disadvantaged.

"Currently, many areas in rural Britian simply cannot get broadband – the areas known as 'not-spots'.

"Until the needed investment the CLA has been calling for happens, it is absurd to roll out mandatory online form-filling."

The CLA is calling for a minimum broadband speed of two megabits a second to every door in Britain by 2012.

HMRC has said that if you cannot complete your VAT return online, they will operate through your accountant or agent.

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Phillippa Coates, Press Officer, 020 7460 7934, phillippa.coates@cla.org.uk

Oliver Wilson, Director of Communications, 020 7460 7936 or 07702 928828, ollie.wilson@cla.org.uk,

Out of hours: 020 7201 9511.

NOTES TO EDITORS:

1. According to Commission for Rural Communities, there were 406,000 VAT or PAYE registered businesses in England in 2005. If we assume broadband unavailability at 20 percent this equates to 81,200 businesses. Total businesses generated £302 billion in 2005. Using the 20 percent benchmark, total turnover could be as high as £60.8 billion.

Dr Charles Trotman – Head of Rural Business Development

An economist, advises on rural economic issues, particularly food policy, rural tourism, equine issues and telecommunications policy.

Phone: 020 7460 7939
FAX: 020 7235 4696
Email charles.trotman@cla.org.uk