HM Revenue & Customs (HMRC) plans to phase out paper VAT Returns from April 2010. After that date, if your turnover is more than £100,000, or if you are newly VAT registered, you will have to submit your return online and pay VAT electronically.
FilingVAT returns online has substantial benefits for small businesses. As with all other online filing systems, one of the main advantages is that the process is simple and very user friendly, with the added advantage that you no longer need to file paper returns by post. You receive an on-screen acknowledgement and a unique reference number, so that you know that HMRC have received your details. Other advantages of the system include email alerts to keep you up to date on developments that affect your business, and the ability to amend your VAT registration details online.
If you pay your VAT bill by direct debit, you will also receive an extended fiing date of an additional 7 calendar days from the standard due date. It will be a further three working days before they collect payment from your bank account. Generally anyone with a UK VAT Registration number will be able to pay by Direct Debit. This 10 day extension can create a substantial cash flow benefit to your small business. To register to file online you should speak to your local TaxAssist accountant.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.