Deadline looms for online VAT returns

Date: 23rd March 2010

Businesses are being reminded of the looming deadline for online VAT returns.

While HM Revenue & Customs' (HMRC) online service has been running for some time, it becomes mandatory as of April 1st this year.

Businesses attempting to file paper returns or using the online service past the deadline face the prospect of an HMRC fine.

The Federation of Private Businesses (FPB) has previously highlighted the benefits of the online service.

Writing on the FPB's website, Debra Dougal, a member of the UK200Group Tax Panel and VAT partner at Haslers, praised the "24-7 access" that the service offers.

Ms Dougal also pointed out that online filing offers businesses instant acknowledgement of receipt, an initial error check, a seven-day return extension and the ability to nominate an agent.

"Apart from not receiving paper returns in the post and possible system crashes, the only disadvantage of online filing is that direct payment must also be made electronically," she said.

"To do this you can use direct debit, BACS, CHAPS, Bank Giro, internet and telephone banking, so cash by post will no longer be accepted."