VAT online filing from 1 April 2010

From 1 April 2010 online VAT filing will be mandatory for all businesses with a VAT exclusive annual turnover (as at 31 December 2009) of over £100,000.

Also all businesses registering for VAT after this date will also have to filing online regardless of their turnover.

Benefits of online filing per HMRC’s website.

• Speed - if you're not already registered to use HMRC Online Services, going through the online registration and enrolment process takes only a few minutes. You'll be able to file your return as soon as you've registered and enrolled for VAT services.
• Security - all transactions are 100 per cent secure. You get a unique User ID and create a password to keep your details safe and allows only you - or someone you authorise - to have access to that information.
• Convenience - the service is available day and night, whenever is best for you.
• Accuracy - there are automatic checks to help reduce errors; meaning there's less chance of having your return sent back to you to be corrected or for clarification.
• Reliability - you don't have to worry about your return being lost or delayed in the post as you'll get an on-screen acknowledgment - including a unique submission receipt reference number - when you submit your return.

The Reality

Businesses will either need to plan for the online filing or will have to use a more modern piece of software which can file online automatically e.g. the latest version of Sage Instant Accounts v15.

It will also allow your accountants to file online on your behalf if registered as an agent and also to review previous returns (up to 15 months old).

All round I think this is a good thing in the long run. However it could catch a few companies and new registration out very quickly.(see below for guide to late filing penalties)

Business Link summary of VAT late filing penalties 

For further reference to help you get setup for the changes see the link below for more information.

HMRC's guide to VAT online

DISCLAIMER – This blog is providing information as a news service. As with all VAT, Taxation and Accounting points please seek professional advice for your own personal or companies situation before taking specific action.