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The Low Incomes Tax Reform Group asks how inclusive is HMRC's policy for doing everything online.

On Monday 8 August HMRC published two consultation documents – VAT: Consultation on the Next Steps for Moving VAT Online, and Digital by Default for direct taxes.

Encouraging people to do their Government business online, if they can, makes good economic and administrative sense. If the systems have been thoroughly tested and are backed up, secure, safe and easy to use, they can be a cheaper and more efficient option for both citizen and State.

But it is wrong to infer that online communication will suit all businesses, of whatever size and whatever their circumstances. Some business, particularly the smallest, would be in real difficulty if the only possible contact with HMRC were online.

Over the last year, LITRG has been supporting several small business owners in their appeals against VAT online filing notices. All have hitherto filed their returns and paid their taxes promptly and accurately. But they could not continue to do so if they were forced to fulfil their obligations online.

They are representative of a significant minority who cannot use a computer or the internet because of age, disability, lack of broadband access, or affordability. These are the citizens about whom the Rt Hon Francis Maude MP, the Minister for the Cabinet Office, has said:

“. . . we recognise that we cannot leave anyone behind. Every single Government service must be available to everyone – no matter if they are online or not.”

The proposals on which HMRC is now consulting are tempered by a programme of ‘digital assistance’, which is described as ‘help and support in making the shift to online’.

Undoubtedly some businesses would welcome such support. But those who will never be able to make that shift must not suffer any disadvantage. In particular, where a disability prevents a business owner from going online, HMRC has a legal duty to make reasonable adjustments.

Surely the easiest, cheapest and most effective way of fulfilling that duty would be to allow that business to continue transacting with HMRC on paper. After all, paper filing will have to be maintained for some whose religious beliefs forbid them to use computers. Why not also for people whose particular needs preclude such use?