HomeNewsTax NewsTax News 2009HMRC Steps Up Push for VAT Filing Online

Tax News 2009

HMRC Steps Up Push for VAT Filing Online

Businesses will need to get to grips with online filing of their VAT returns next year.

HM Revenue & Customs (HMRC) has announced that from 1 April 2010, all businesses with an annual turnover of £100,000 or more and all businesses newly registered for VAT, regardless of their turnover, will be required to submit their VAT returns online and pay electronically.

In a move clearly designed to encourage electronic filing and payment, which HMRC considers more efficient, safer and convenient, it also withdrew the first class pre-paid envelopes it previously supplied to customers making payments or submitting VAT returns from 1 October 2008.

HMRC, does, however thoughtfully point out that if businesses still wish to submit hard copy returns and cheques, the postage is tax deductible!
With compulsory online filing clearly on its way for all businesses in the not too distant future, it makes sense for to start preparing for the switchover now”.

There are many advantages to online filing, which include improving cash flow at a time when every business is looking for ways to do so. Submitting a VAT return on line gives you up to seven extra calendar days to do so and by paying electronically, you benefit from a similar amount of extra time to settle your account.

If you pay by direct debit, you have three further banking days before payment is taken from your account. You also receive VAT repayment more quickly if HMRC owes you money while filing and making payments electronically means you also avoid the risk of paperwork being delayed in the post.

You can also arrange for VAT return reminders by email to tell you that your VAT return is due and email alerts to keep you up to date with the latest VAT developments.

This article has been provided by UK200Group.