The next steps for moving VAT online
VAT-registered businesses with a turnover of less than £100,000 will have to file their VAT returns online from April 1 2012, HMRC has proposed.
The proposal is part of a drive by the government to move transactions from paper to online. HMRC is also consulting on the next stages for moving direct taxes online.
Since 2010, larger businesses and all new VAT registrations have had to file VAT returns online and pay their VAT electronically. Others can still file paper returns and pay by cheque.
In a consultation document HMRC says that the level of compliance among larger businesses for online VAT filing has been “good” with “few practical problems” and take-up that was “considerably faster” than forecast.
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Making amendments online is vital. We had a client who's VAT return was incorrect so we wrote to them informing them of this and the amended figures, all before the end of the month. They still took the original amount even though they confirmed receipt of our letter putting our client £3500 out of pocket all because their systems aren't joined up.