Accountancy Services Direct – January 2010 is VAT day, are you ready? Part 2
In this Accountancy Services Direct article we will deal with the issue of electronic filing, are you ready for it and does it apply to you or your business?
HMRC has a plan in place to have everyone filing their VAT online by 2012.
From 1 January 2010 there are two things to consider:
1.When are you registering for VAT; and
2.Is your turnover greater than £100,000?
Let’s look at each one in turn:
1.If you register for VAT post 1 April 2010 then you will have to file your VAT Return and make your payment online. Electronic filing is compulsory regardless of turnover.
2.Any business which is registered for VAT in the UK and whose turnover is over £100,000, exclusive of VAT, in the year ending 31 December 2009 (or on a later date) must file online and pay electronically. This covers periods of VAT beginning on or after 1 April 2010.
All other businesses can continue as before.
We at Accountancy Services Direct recommend making the switch before the 2012 deadline. Not only is submission quicker but you get an extra 7 days from the normal paper submission date to submit and pay your VAT. How generous!
Points on online filing
It is very similar to paper filing. The form is the same and you can keep a printed record or store it on a computer.
The online system will also check your calculation to see if you have done your sums correctly! Good piece of mind.
What happens next?
HMRC will write to everyone who will be required to complete their VAT Returns online in February 2010 and are planning to provide full instructions of what to do.
They are going to provide regular updates on their website: www.hmrc.gov.uk/vat/vat-online/moving.htm
Your first step would be to enrol for VAT online services. You can do this as early as you want, or you can contact us and we can either talk you through it or take the job off your hands. For information on how to sign up visit: www.hmrc.gov.uk/vat/start/register/signup-online.htm
For any other help then we would recommend speaking to your accountant, HMRC helpline – 0845 010 9000 – or us to go through how is best for you to proceed.
There are also online demonstrators on the HMRC website for you to view and use.
Should you wish to discuss anything surrounding online filing of VAT or anything else surrounding VAT then please do not hesitate to contact us at Accountancy Services Direct.
« Are you ready for the VAT changes? 1 January is coming fast! | Home | Trading with overseas businesses? Are you ready for the changes to the Cross-border VAT rules? 1 January 2010 is VAT day, VAT part 3 »
Leave a Comment