HMRC reminder to businesses over VAT

Jul 6 2010 by Karen Dent, The Journal

HM Revenue & Customs (HMRC) is reminding VAT-registered firms that they must now file their returns online and pay their VAT electronically.

The new rules apply to existing VAT-registered businesses which have annual turnovers of £100,000 or more (excluding VAT) and any businesses which registered for VAT from April 1 this year. An average of 5,000 new VAT registrations are made by businesses in the North East annually.

Most traders file their VAT returns quarterly and the first quarterly returns to be affected by the changes are those covering April to June 2010. They must be filed online by August 7.

Stephen Banyard, director of HMRC’s business customer unit, said: “The vast majority of customers affected by the new arrangements have already enrolled for HMRC’s VAT Online service, and many have also filed their first returns online.

“However, if you’re a VAT-registered trader who’s affected by these changes, and you haven’t yet signed up, you need to take action now.”

Customers wishing to sign up for the VAT Online service can do so on HMRC website – www.online.hmrc.gov.uk/registration.htm