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Thursday 26 January 2012

Online VAT Returns

From April 2012, businesses (with very few exceptions) will have to file their VAT Returns online and pay their liability electronically.  If you are not already online, now is the time to set it up.

HMRC strongly recommends you sign up to using the online service before April 2012, so that you have time to get familiar with the new service. It has also proved useful to set up online filing, and the associated direct debit mandate, some time before the first return needs to be submitted, to avoid delays in either the submission or payment of your first return.

When you submit your VAT Returns online, you must also pay any VAT due electronically. Paying electronically will normally give you to up to seven extra calendar days to submit your return and pay your VAT, unless you make annual returns or payments on account. The extended due date will be shown on your online return and you must ensure that cleared funds reach HMRC's bank account by this date. If your payment clears later than this, you may be liable to a surcharge for late payment.

Moving to online filing

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