THE Farmers’ Union of Wales (FUW) has received a pat on the back for lashing out at the ridiculous decision by HM Revenue and Customs (HMRC) to force farmers in areas with no, or poor, broadband Internet Service Provider (ISP) provision, to fill out their monthly or quarterly VAT returns on-line from April 1 this year.
The move applies to all businesses with a turnover of more than £100,000, but many farmers do not use computers at all and will find it difficult to file returns on-line. It’s obvious that the HMRC doesn’t fully appreciate the problems facing farmers and other businesses in rural communities like Powys.
The age structure of the industry is such that lots of us grew up before the widespread use of computers and we’re going to struggle. The FUW recently contacted HMRC to explain that many farmers do not have access to broadband, which allows faster internet access, because of their rural location.
We do not have broadband access at my farm in Dolfor, near Newtown. We were told our line is too antiquated for broadband, so common sense should have told the HMRC that something can only be mandatory if people have the ability to comply.
The FUW contacted HMRC to find out what alternative they could suggest if farmers were not able to go on-line, but they merely replied that farmers could ask family or friends, who have a computer, to offer them Internet access, or employ the services of an agent who could file the return on their behalf.
The website ISPreview.co.uk - an independent source of ISP information, listings and reviews since 1999 - picked up our story and stated HMRC’s move ‘appears absurd’ at a time when the Government’s own Universal Service Commitment (USC), which aims to deliver a minimum broadband ISP speed of at least 2Mbps to virtually every household in the UK by 2012, has not even begun to be implemented.
“It is understandably more efficient and cost-effective for the Government to have businesses process tax returns on-line and the HMRC suggests that broadband is not required to fill-out a tax return online. However, dial-up is costly and unlikely to be sufficient, not to mention that some farmers don’t even have a computer,” they added.
As a temporary solution the FUW will provide a service at its county offices where staff will file members’ VAT returns on-line on their behalf. The paper-based summary should be completed in the normal way and taken to the county office.