Major Changes to VAT Return Filing
A major change is coming to VAT which will affect many businesses. Online filing of VAT Returns becomes compulsory for all businesses with a turnover of more than £100,000 from1 April 2010.
The change will mean that any business that does not already file their VAT Return electronically will need to register with HM Revenue & Customs for online filing. They will no longer be able to submit their Returns in paper format and must do so electronically. Businesses will need to both file their VAT return online and make their payment electronically.
The new rules also apply to any new business which registers for VAT from 1 April 2010 irrespective of their level of turnover. Eventually Online filing will be phased in for all VAT registered businesses.
Filing online does have a number of benefits. It is secure and convenient, it will automatically carry out an arithmetical check of the entries on your Return and an immediate online acknowledgement confirms that your return has been received. Making your payment online can also be beneficial in that in most case it will give you an extra seven days in which to pay.
HMRC will be sending out formal letters during February to all businesses affected by the change. Those needing to register for the service should do so as soon as possible to ensure they are ready in plenty of time. This can be done via the HMRC website at www.hmrc.gov.uk . You will need the following five pieces of information to register which can all be found on your VAT registration certificate.
- your VAT registration number
- the postcode of your principal place of business
- your effective date of registration for VAT
- the final month of the last VAT Return you submitted
- the 'Box 5' figure from the last VAT Return you submitted
If you are unsure whether the new rules will affect you or how to register then contact us for advice, we already submit VAT Returns online for a number of our clients
Biggleswade Chronicle - 5 February 2010