HMRC has confirmed that paper VAT Returns will be phased out over the next year or so. From 1st April 2010, most VAT Returns will have to be filed online.

Some businesses will escape compulsory online filing for a little while longer but businesses following under the following categories will be caught:

1. Businesses whose turnover exceeds £100,000 (excluding VAT) per annum
2. Any business who registers for VAT after 31st March 2010

HMRC will be reviewing the position regarding paper VAT Returns again in 2012.