Submitting online VAT returns
As readers will be aware, HMRC are to begin phasing out the use of paper VAT returns from 1 April 2010. From this date, all VAT registered businesses with a turnover exceeding £100,000 and all newly VAT registered businesses will be required to file VAT returns and make payments online.
In advance of this change, HMRC have recently updated their VAT Online service. Existing users of the system can continue to use their existing log-in details but may notice some updated content in the system.
The changes to the system are intended to:
- Simplify the process for registering for and enrolling to use the VAT Online service
- Allow users to set-up an automated email reminder service for filing VAT returns
- Provide an easier process for agents to set-up online client authorisations
VAT registered businesses can file VAT returns using HMRC’s free online software or using commercially produced software. In either case, businesses must firstly register and enroll for the VAT Online service in order to submit a VAT Return online.
VAT registered businesses with a turnover of less than £100,000 will have the option to continue filing paper returns. This will be reviewed prior to 2012.