| HMRC are reminding
businesses that new rules on how VAT
returns are submitted and payments are
made will come into force next year. Paper
VAT returns will be phased out from 1
April 2010.
As a start of this phasing out process,
businesses with:
- annual turnover of £100,000 or more,
and
- all businesses which register or
should have registered for VAT on or
after 1 April 2010
will need to submit their VAT returns
online and make payments electronically
from April 2010. Those businesses that are
already VAT registered, with a turnover
below the threshold, will have the choice
to use paper returns but this will be
reviewed by 2012.
Further guidance has been issued
together with details of the penalties for
failing to make an electronic return. The
penalties will be:
- turnover £100,000 (VAT exclusive)
and below - £100
- turnover £100,001 to £5,600,000 -
£200
- where turnover exceeds £5,600,000
the penalties charged will be higher.
HMRC have announced a period of grace
which means that penalties will not be
imposed initially, however periods ending
on or after 31 March 2011 will be charged.
This grace period is to allow businesses
to adjust to the change in procedures.
HMRC have also announced simplified
procedures for agents to submit their
clients VAT returns, so please do get in
touch if you would like any further advice
in this area.
Internet link:
HMRC VAT
Statutory instrument |
