Yes, there are substantial benefits for small businesses to file their VAT returns online. As with all other online filing systems, one of the main advantages is that the process is simple and very user friendly, with on screen information to help you complete your return. An added advantage that you will not need to file any more paper VAT returns by post. With the online system you actually get an on-screen acknowledgement and a unique reference number, so that you know that the 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 instantly your VAT registration details.
By paying your VAT electronically you can receive upto 7 calendar days from the standard due date before your payment becomes due. Also if you choose to settle your liability by direct debit you receive a further 3 banking days before the amounts are taken from your account, and this 10 day extension will create be a substantial cash flow benefit to your small business.
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.