Businessmen Service

From 1st April 2012, all VAT returns must be submitted online, and all VAT liabilities must be settled electronically, as HMRC continues to overhaul its paper-based systems and make the most out of web technology. The new rules, which cover returns submitted for accounting periods on or after 1st April next year, already apply to new VAT-registered businesses, and businesses turning over £100,000. Both the latter groups have had to adopt online VAT filing since 1st April 2010. Online VAT administration will replace the current system, which typically involves completing and posting a green quarterly VAT return, and paying by cheque or online. HMRC points out that, aside from the changes being mandatory, there are a number of benefits to switching to online filing right away, rather than waiting until next year, such as receiving an automatic acknowledgement to confirm that your return was submitted successfully, an inbuilt calculator which will highlight any obvious arithmetic errors you may have made, and online alerts to let you know when your next return is due to be completed. Some online accounting systems, such as FreeAgent even have the ability to submit VAT returns built in, which illustrates how fast technology has transformed the way small businesses deal with their accounts (and HMRC). To get started, you first need to register to use the HMRC VAT Online service – visit and follow the instructions as a ‘new user’. You can also get in-depth advice from HMRC’s VAT section, or call the VAT Online helpdesk on 0845 010 8500 (during normal working hours).

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