Advantages of VAT online

Advantages of VAT online

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I know that many contributors to this site use VAT online services. We would use it if we saw an advantage.

Could someone please tell me what the advantages are of an agent submitting client returns online?

We complete the form manually and send it to the client for them to check and sign it.

The client can then choose to file it online, and pay it online or send a cheque. We also enclose our fee note with the Return.

Plus those clients wanting to pick up their records can pick up their Return at the same time.

I would appreciate any replies on the subject, thanks in advance.

Steve

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By axw001
14th Mar 2009 11:20

VAT online filing benefits
Steve

Online filing of VAT when considered for a business in isolation does not necessarily bring huge benefits.

When the business files directly from within the accounting package which forms the primary records of the business there is a benefit of convenience and a time saving of about 10-15 minutes compared to filling forms, licking stamps, writing cheques etc. For online filers the requirement to pay by direct debit also means almost 2 extra weeks to pay and less bank charges than a cheque.

This may seem of little consequence for a single business but we have partners acting as agent for hundreds of clients and the savings from this efficiency soon add up and are enjoyed by both the accountant and the clients.

You should also know that VAT changes are in the pipeline that will require many businesses to file EC Sales List (VAT101) monthly instead of quarterly. I would prefer to do this online direct from my accounts if I could.

Over time HMRC are going to require more an more online filing. Each individual filing may not seem like a big saving, but if your software supports online filing for a number of different requirements, eg VAT and payroll, over time, and with a significant number of clients you will be able to spend less time shuffling paper and more time helping clients with business issues.

Alan Wright
Director

[email protected]
Online Accounting Software from Liberty Accounts

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