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Online Filing of VAT returns

You may already be aware that with effect from April 2010, all businesses with a turnover of over £100,000 will be required to file their VAT returns online and pay their VAT electronically.

If we currently file your return for you, there are no particular steps that you will need to take. We will arrange to act as your agent for online VAT services and you will shortly receive notification of this from HMRC together with an activation code. Please advise us as soon as this arrives as we will require this to complete the authority to act on your behalf electronically.

If you file your own VAT returns you will need to register for VAT online prior to April 2010 in readiness. This is a fairly simple process, but to do so you will need the last VAT return you have filed, and the date the business registered for VAT, which is shown on your VAT registration certificate. If you are not able to locate this, you can obtain the date from HMRC VAT advice line on 0845 010 9000. There is a lot of information on HMRC’s website at www.hmrc.gov.uk/vat/vat-online/index.htm. We would advise that you register for online services as soon as possible in order to be ready to file your return online from April 2010.

Whether we file your VAT returns for you or you file them yourself, you will need to make arrangements to pay your VAT electronically. You can use an internet bank account or use a variety of other methods. By far the simplest of these is to set up a direct debit authority under which VAT is collected three working days after the due date for each return. By using online filing, you will have an additional 7 days to file your return and as such online returns will be due by the 7th of the month. This means that VAT will normally be paid between the 10th and 12th of the following month after the normal due date for the return. More details about online payment methods including details on how to register for Direct Debit can be found at www.hmrc.gov.uk/payinghmrc/vat.htm.

If you need any further details or assistance with this, please contact Elliott Buss on 029 20734100 or elliottb@bpuaccountants.co.uk