Electronic Filing of VAT Returns

In March 2006, the Lord Carter review of HMRC’s use of electronic filing was published. In relation to VAT, he recommended that there would be a ‘phased mandation’ of electronic filing and payment of VAT Returns. In other words, there will come a time when all VAT registered persons will be required to file and pay electronically.

From 1 April 2008, all newly registered businesses, and all existing businesses with turnover exceeding £5.6million will be required to file and pay electronically.

From 1 April 2010, all existing businesses with turnover exceeding £100,000 will be required to file and pay electronically.

It is intended that all remaining businesses will be included by April 2012.

Primary legislation is likely to follow in the 2007 Finance Act.

It is intended that a business will be able to appeal against this insistence; for example, a business that will only use cash for all payments. It is expected that such appeals will be few. Historically, appeals against the administration of VAT have been unsuccessful.

Article kindly provided by Les Howard, VAT Consultant - http://www.vatproblem.com/

----------
Sign Up! - Make sure you sign up to our FREE weekly newsletter for the latest tax news and advice for small companies. Posted March 6, 2007

Business Services

Compare Quotes

Latest articles in Value Added Tax

VAT Cash Accounting Scheme Guide
[May 9, 2008] As the credit crisis continues, many small businesses are finding that creditors are taking longer to pay their bills. If your business qualifies, you could greatly benefit by using the VAT Cash Accounting Scheme.

VAT Update - Correction of errors made easier in Budget 2008
[April 17, 2008] A helpful change in Budget 2008 is the increase in the limit below which errors can be adjusted on a VAT Return.

VAT Update - Claiming back VAT from 1973-1997
[April 14, 2008] Following the 2008 Budget, and a number of Court cases, the door has opened for many businesses and charities to recover VAT overpaid from 1973 to 1997.

VAT Update - Withdrawal of Staff Hire Concession
[April 9, 2008] Under current VAT rules, employment agencies (and other firms) charge Value Added Tax on their 'profit margin', not on the total amount received. This concession is to be withdrawn from 1st April 2009.

Bytestart Online VAT Calculator
[February 28, 2008] Handy VAT calculator to help you work out how much Value Added Tax to charge customers based on your net billing amounts.

VAT - Value Added Tax Guide
[February 3, 2008] A summary of the UK VAT registration rules - when you should register and how VAT is calculated. Value Added Tax guide for small businesses.

VAT accounting for mixed business and non-business purposes
[January 29, 2008] The issue of VAT accounting when the goods involved are put to both business and non-business purposes is perhaps more widespread than many would first consider. How to account for mixed-use VAT via the 'Lennartz Accounting' scheme.

VAT invoicing changes from 1st October 2007
[January 17, 2008] If you are in business and registered for VAT, from 1 October 2007 you are required to add certain information to your sales invoices.

Government faces small business anger over VAT delays
[November 1, 2007] The Government once again feels the heat as business VAT registration delays reach new levels. Just 7% of applications were completed within the target time period during April 2007.

VAT on computers provided for home use - revised treatment
[October 5, 2007] On 6 April 2006 the Government withdrew the Home Computer Initiative - from that date the provision of a computer for home use to an employee may become a taxable benefit.

Our Partners