Submitting online VAT returns

From 1 April 2012 all VAT Returns must be submitted online and payment must be made electronically. This measure completes a process started 1 April 2010 when VAT registered business with a turnover exceeding £100,000 and all newly VAT registered businesses were required to file VAT returns and make payments online. Exceptionally, VAT registered businesses who were VAT registered before 1 April 2010 and had a turnover of less than £100,000 were able to continue filing paper VAT returns. However, from April 2012 this option will no longer be available and all businesses that have not yet registered for online filing and payment of VAT returns should ensure they do so as soon as possible. The change will apply for accounting periods beginning on or after 1 April 2012 and for the first time no further, paper VAT returns will be sent to registered traders. There are a number of benefits to filing online which are highlighted by HMRC in the news release including:• An automatic acknowledgement that a VAT return has been received.• A handy sum checker.• An email alert to remind businesses when their next online return is due.VAT registered businesses can file VAT returns using HMRC's free online software or using commercially produced software. In either case businesses must have registered and enrolled for the VAT Online service. We would urge businesses, that are still filing paper returns, ensure that they are properly prepared for this change.