VAT Online

As you may be aware, HM Revenue & Customs are introducing the requirement to file VAT returns online and pay VAT electronically from April 2010. This applies to VAT periods commencing on or after 1 April 2010 i.e. if you submit quarterly returns, the quarter ended 30 June 2010 would be the first relevant period.

The requirement applies to the following categories of businesses:

  • Any newly VAT registered taxpayer with a registration date of 1 April 2010 or later
  • Any business with annual turnover of £100,000 or more, excluding VAT.

The £100,000+ limit includes exempt income and is based on the results for the last four quarterly returns in 2009. You should have received a letter from HM Revenue & Customs notifying you if you fall into this category. If you fall into the £100,000 category, you will have to file online even if your turnover falls below this limit in the future.

Even if you do not fall into these categories, you may wish to voluntarily register for online filing as it is likely that it will apply to all businesses in due course. Online registration can also give you extra days to submit your return and pay the VAT due.

If you have not already registered for online filing, I would recommend that you register as soon as possible. You will require the following information - VAT registration number, postcode of principal place of business, date of VAT registration, quarter-end (or month-end) of last VAT return submitted and box 5 figure from last VAT return. We understand that if you do not know the date of VAT registration, you should be able to obtain this information from the national helpline service (0845 010 9000), subject to correctly answering their security questions.

Once you have registered for online filing, it is also necessary to pay any VAT due electronically. HM Revenue & Customs consider all payment methods, except paying by post, to be electronic. This does include paying by Bank Giro at your bank or building society.

For HMRC's guide to signing up to use VAT online services please visit our Online Resources section.