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For information of users:
This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.
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Online filing of VAT returns
You may be aware that the Government is moving forward with the plan to implement online filing for most business tax returns. The next phase of this it to require businesses to file their VAT returns online from April next year. This requirement will apply to all businesses with annual turnover of more than £100,000, which means that your business may be affected by this change.
Your first return which will be affected by the new rules will be for the VAT period beginning on or after 1st April 2010, which must be filed online and paid by electronic payment, which includes BACS, Billpay and Direct Debit. It would be wise to start thinking about how you intend to move to online filing for VAT in the run up to this date.
If you file your own VAT returns, you will need to register for VAT online prior to April 2010 in readiness. This is a fairly simple process, but to do so you will need the last VAT return you have filed, and the date the business registered for VAT, which is shown on your VAT registration certificate. If you are not able to locate this, you can obtain the date from HMRC VAT advice line on 0845 010 9000. There is lots of information on VAT online on the internet at www.hmrc.gov.uk/vat/vat-online/index.htm explaining all of the steps to registering for VAT online.
If you would prefer not to file online yourself, we would be only too happy to help, but you should let us know as soon as possible to allow us time to register as your appointed agent for VAT Online.
If we already submit your VAT returns on your behalf, there are no particular steps you need to take to prepare for this. We shall be arranging to act as your agent for online VAT services, and you may receive notification from HMRC of this, with an activation code. Please advise us as soon as this arrives, as it enables us to complete the electronic authority to act.
Electronic payment
Whatever your decision about filing VAT returns online, you will also need to make arrangements to pay your VAT liabilities electronically. You can use an internet bank account, or there is a wide variety of other ways in which you can make electronic payment, but the simplest method is to set up a Direct Debit authority under which your VAT is collected three working days after the due date for each return. You will have an extra 7 days to file your return when using the online service, so returns are due on 7th of the month. This means your VAT would normally be paid between 10th and 12th of the following month after the normal due date for the return.
More details about online payment methods are here: www.hmrc.gov.uk/payinghmrc/vat.htm, including details of how to register for Direct Debit, which is done after you have registered to file returns online.
If we are arranging to register you for Online VAT we will contact you again to advise you when to set up a Direct Debit authority. .
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