VAT – Submitting online returns
HMRC are keen to remind businesses that there will be major changes to VAT filing and payment requirements 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.
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 enrol for the VAT Online service in order to submit a VAT Return online. The VAT Online service can be accessed by visiting www.online.hmrc.gov.uk.
HMRC will begin sending formal letters to VAT registered businesses in February 2010 to notify them of the new compulsory online filing and payment requirements. The letter will include a guide to registering for VAT online.
The new rules will apply from the first VAT period beginning on or after 1 April 2010. 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.