Partner Article

Online VAT filing to become compulsory

HRMC has announced plans to make online VAT filing, payment and registration compulsory in April 2012

The “VAT: consultation on the next steps for moving VAT online”, opened on August 8 and included proposed legislation and views on how to ensure and enhance assistance for those struggling to move online.

Under current legislation, businesses with a turnover of less than £100,000 can choose how to file their VAT returns, but under new legislation it will be a requirement to complete documents online regardless of the size of the business. It is hoped that this new legislation will ensure speed, security and convenience for customers, and efficiency for HRMC.

While businesses will be expected to prepare for the changes, HRMC will offer a grace period to those experiencing difficulties moving online, and will not penalize those who fail to do so I the first year.

John Richards partner at RMT Accountants & Business Advisors said: “Once in force, the new rules will require online filing for all accounting periods starting on or after April 1, 2012, with any VAT due to be paid electronically from the same date.

HMRC will write to the businesses affected in February next year, explaining the changes and their impact

This was posted in Bdaily's Members' News section by Ruth Mitchell .