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VAT online

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12th Oct 2009
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Businesses preparing for online filing of VAT returns next year have a long way to go. From April 2010 VAT returns are subject to mandatory online filing for businesses with turnover of more than £100,000. The number of returns currently filed online, however, is still quite low. There are around 1.95 million VAT registered businesses at the moment. Getting a precise figure on how many file online is quite difficult as businesses may file their returns monthly, quarterly or annually. However, HMRC has been able to provide the following data : By 30 September returns filed so far this year are 3.34 million returns on paper, and 655,000 online returns – so around 16% of returns filed so far this year have been filed online.

Although we have no figures for the number of VAT registered businesses with turnover of less than £100,000, it is clear that there is a massive challenge to businesses to step up to the mark with VAT online filing. Agents will need to play their part in advising VAT registered clients about the changes, and some may provide a service to help clients file online.

Developments in the HMRC online services due next month will simplify the process of gaining authorisation to file VAT returns online, so that clients will no longer need to be registered with the Government Gateway to allow the agent to act for them in respect of VAT online.

Smaller businesses wishing to file their own returns online will not need to purchase software – the HMRC VAT Online interface is simple to use, and generates an email reminder to businesses when the VAT return is becoming due. Some accounting packages have a VAT Online interface, enabling users to file their returns without going to the HMRC website.

Agents preparing for online filing of client VAT returns should think now about the approval process, as the new penalty legislation requires the client to approve his returns before they are filed. Agents will probably wish to consider this step carefully in setting up their systems to support clients with the move to VAT online. How does your firm handle this? Let us know!
 

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By terry morris
12th Oct 2009 12:56

VAT ONLINE

AT PRESENT AGENTS WHO ARE NOT VAT REGISTERED THEMSELVES CAN NOT GAIN AUTHORISATION TO FILE ONLINE. DOES ANYONE KNOW IF THE INLAND REVENUE ARE ADDRESSING THIS PROBLEM AS THERE MUST BE THOUSANDS OF AGENTS THAT OPERATE A SMALL BUSINESS AND ARE NOT VAT REGISTERED.

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Rebecca Benneyworth profile image
By Rebecca Benneyworth
12th Oct 2009 13:45

Yes

This will certainly be available before April and HMRC are hoping to make it available before the end of 2009. From that point you will be able to sign up to submit returns on behalf of clients using the new agent authorisation process for VAT which will be introduced in November.

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By terry morris
12th Oct 2009 15:41

VAT ONLINE

REBECCA

THANK YOU FOR YOUR PROMPT REPLY

 

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Shorty
By Shorty
12th Oct 2009 16:58

Not able to do this yet?

As far as I was aware this option had not been enabled as yet? See Working Together 36.

We can register our clients for VAT but do not have the option to submit Returns on their behalf.

We are waiting for the switch to be thrown!

 

 

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Rebecca Benneyworth profile image
By Rebecca Benneyworth
12th Oct 2009 17:43

I'm sure that's what I said

Yes, it is coming later this year - we hope to see both facilities before the end of 2009 but the guarantee is it will be up before April 2010. (as per WT with a bit more inside knowledge)

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By User deleted
22nd Oct 2009 17:32

Interested if someone could please point me to the new penalty l

...that says its a requirement for the client to approve the return before its filed by an agent.

Currently we use the fact that they have authorised us as agents in the first place to file the return without their specific say so. We email them the figures and say if they have any questions please come back to us within two days, and after that the return will be filed if we don't hear from them. The returns are pretty simple so the probablilty they are incorrect is about 0.001%. Would this still be an acceptable method under the new regime?

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By andrew Porteous
09th Dec 2009 12:53

VATC8 Letters

Just now we recieved 7 separately posted virtually identical letters addressed to us from HMRC headed "authorising your agent to deal with us..." .

They are all dated 26th November and contain OUR VAT number as the agents reference and additionally quoting our VAT number.

When I say identical there is a slightly different 17 number reference number in the top left corner of each letter. (eg: 010001:00000004:1)

We are given an Authentication code with an expiry date of 26th December.(Boxing Day I think!)

There is no refernce to any client.

Can any one shed any light on these letters please? And what we should do with them?

Cant wait for what tomorrows post might bring

Andrew Porteous

 

 

 

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