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Brian Redford, Deputy Director, Intermediaries and External Communication, Business Customer Unit, HM Revenue & Customs (HMRC) reminds businesses of recent changes to VAT online filing.

Online VAT Filing is Here!

If you run a business with an annual turnover of £100,000 or more (excluding VAT), you will now have to file your VAT returns online for any periods that begin on or after 1 April 2010. You will also have to pay any VAT due electronically, for example, by Direct Debit.

Anyone who has registered a business for VAT from 1 April this year is similarly obliged to file online and pay their VAT electronically, regardless of their turnover.

The vast majority of VAT-registered businesses file their returns quarterly, and the first quarterly returns that will be affected by the new rules are those that cover the period April to June 2010.

Businesses who file monthly VAT returns should have already started filing their monthly returns online – the first return affected was the one for April 2010, due in by 7 June. 

Quarterly Filers: Your First Deadline

If you file VAT quarterly and your next return covers the period April to June, you must submit your first online return by 7 August.

If your next VAT return covers May to July, you will need to complete and submit your first online return by 7 September.

If your next return covers June to August, your first online return will be due by 7 October.

Not Yet Signed Up to VAT Online Services?

To file your return online, you must first of all sign up to HMRC’s VAT Online services. You must do this whether you intend using HMRC’s free online filing service or a commercial package.

If you haven’t already signed up, then you need to act quickly, or you could miss your filing deadline. You can sign up quickly and easily at Welcome to Online Services. Once you’ve done this, you can file a return online straightaway if one is due – you don’t need an activation code to do so.

To walk you through the signing-up process and how to file online, there’s a demonstrator and two Beginners' Guides at Online VAT Returns

Fewer Errors and 100% Secure

The main benefits of online filing and electronic payment are that you get more time to file and more time to pay – and it’s quick and easy to do.

Another big plus of filing online is that you’re less likely to make an error. The online VAT return is similar to the paper version, with the added benefit of a handy arithmetic checker, so you are less likely to have your returns sent back for correction.

All transactions are 100 per cent secure and you will get an on-screen confirmation that we have received your return – so it’s quicker than posting it and you know it has arrived safely. 

Set Up an Email Reminder

When you sign up for the VAT Online service, you can ask us to remind you by email when your next return is due. To set this up, go to the ‘At a glance’ page and select ‘Maintain email address’.

We recommend you set up an email alert as we will no longer be posting you a paper return to remind you that your next return is due.

Paying Electronically

You also have to choose an electronic payment method. You can pay by Direct Debit, BACS Direct Credit, Bank Giro, CHAPS transfer, or by telephone or Internet banking. In most cases, paying electronically gives you up to seven extra calendar days to pay and file your return – and even longer to pay if doing so by Direct Debit.
 
If you want to pay by Direct Debit, you will need to complete the online Direct Debit instruction at least five bank working days before you submit your next return online.

If you want to pay by Bank Giro, you need to order a book of paying-in slips from us – please allow plenty of time before your first payment is due.

You can get full details on all electronic payment methods at How to Pay VAT

For further information about all aspects of VAT, including filing online, go to the VAT section of HMRC's website