VAT changes from 1 April

By 30 April you may have to file your VAT returns electronically, as paper VAT returns are being phased out.

All businesses that register for VAT on or after 1 April 2010 must file electronic returns and will not have the option of paper returns.

In addition, a business that is already VAT registered and has a turnover of £100,000 or more must file electronically after this date.

If VAT returns are filed electronically, then any VAT due must also be paid electronically.

So, what do you need to do?

• Talk to your accountant if they will be submitting your VAT return online on your behalf and discuss what you both need to do, to ensure you meet the deadline for your first online return.
• Register and enrol for the VAT online service.
• Consider whether you need to change any of your business processes for checking and signing off your VAT return.
• Identify your preferred form of electronic payment (e.g. direct debit, internet banking etc.) and set up the necessary arrangements.
• If your business has to pay your VAT by cheque, make sure you order from HMRC the necessary Bank Giro paying-in slips.

For more information, see the HMRC website or speak to your usual contact at K&H or contact Susan Kemish.