HMRC is considering proposals that will make online submission of VAT returns compulsory for all start-ups, something that is presently only a requirement for those businesses with a turnover of more than £100,000. If agreed, the changes could be applied as early as April 2012.

However, there is strong opposition from the Forum of Private Business, which released a report highlighting the problems with the present online tax system. They have no problem with using the online system - so long as it's fit for purpose.

How do you file your VAT returns? Would you be happy about being forced to file them online? Let us know your thoughts.