Are you ready for filing VAT returns online?
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What are the changes?
HM Revenue and Customs (HMRC) have announced that from 1 April 2010, all VAT registered businesses with a turnover in excess of £100,000 and any newly VAT registered business, regardless of size, must submit their VAT returns online and pay any liability due electronically.
Paper filing for those existing VAT registered businesses currently below the £100,000 threshold will remain an option but HMRC are working to the assumption that everyone will be required to file online by 2012.
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It would be wise to now start thinking about how you intend to move to online filing for VAT to ensure that your systems and processes are in place prior to the change.
By acting early this will help you to identify and eliminate any potential system problems and having to change your accounting procedures at the last minute.
Due to the recent introduction of the new penalty regime it is more important than ever to ensure that your VAT obligations are met in a timely, accurate and efficient manner to reduce the risk of financial penalties.
What are the Benefits?
There are benefits to filing VAT online, such as:
- You get an additional 7 days to pay any VAT due which will no doubt help with cashflow during the current economic climate.
- No disruption from postal delays and strikes, so that returns are received by the due date.
- No lost payments or returns as you receive acknowledgement of filing onscreen with a confirmation number.
- Certain calculations are performed automatically as you complete the form helping you know what you owe or are owed straight away.
- Forms filed online are processed much faster and so if you are due a repayment you could receive the benefit of this much soon than by filing manually.
- Online help to assist you in completing the return is accessed on screen whilst you are filling in the form.
How do I go about registering online?
This is a fairly simple process and is a case of following the online registration process by going to www.hmrc.gov.uk/vat/vat-online.
In order to complete the process you will need the last VAT return you have filed, and the date that the business registered for VAT, which you can find on your VAT registration certificate.
If you can not locate the certificate then you can contact the VAT advice line on 0845 010 9000 and they can provide you with the date required.
What is electronic payment?
The term paying electronically is payment made by any of the following means:
- BACS
Bank Giro Credit Transfer
- CHAPS
- Direct Debit
- Phone using an appropriate credit/debit card
Direct debit is the preferred method and your VAT is collected three working days after the due date for each return.
You will have an extra 7 days to file your return when using the online service, so returns are due on the 7th of the month. This means that your VAT will normally be paid between 10th and 12th of the following after the due date for the return, if paying by direct debit.
More details on online payment methods can found at www.hmrc.gov.uk/payinghmrc/vat including details of how to register for direct debit, which is done after you have registered to file returns online.
How can Essex Abel assist you?
- We are able to guide you or your staff through the online registration process and train your staff in submitting returns online in the future OR;
- You may wish to consider using us to ease the administrative burden of your business and appoint us as your VAT agent to file online on your behalf. If you would prefer not to file online yourself, then please let us know in sufficient time so that we have time to register as your appointed agent for VAT online.
- We can also process new VAT registrations online for you without the need for paperwork, speeding up the process of obtaining a VAT registration number.
Whatever your decision about filing VAT returns online, we can advise you on your current administrative systems to ensure an all round VAT compliance and accuracy such as EC Sales lists and intrastat forms, which is particularly important in light of the introduction of the new penalty regime.
Please contact us on 01509 267827 or email us should you wish to discuss any aspect of filing online further.
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