Guide to filing your VAT return on line

From 1 April 2010 all VAT returns must be filed on line for businesses with a turnover in excess of £100,000 per annum.  If your business currently exceeds the turnover limit and you are not already registered to file on line then it is advisable to register in advance of the anticipated rush in March and April 2010.

Registering on line is a relatively simple process and you can follow the Moore and Smalley guide below:

Step 1

Gather together the following information

1. VAT registration number
2. Principal place of business post code
3. Date of registration for VAT
4. Final month of last VAT return submitted
5. Box 5 figure on last VAT return submitted

Step 2

Go to www.hmrc.gov.uk and click ‘VAT on line’, which you will find on the left hand side of the screen under ‘do it on line’.  Follow the on screen step by step instructions. 

What happens next?

You will receive an activation code from HM Revenue and Customs (HMRC) within approximately 7 to 14 days.  You will need this code to submit returns on line.  Please note that once you have submitted a return on line you will not receive a paper return in the post.  Instead you will have the option of setting up an e-mail reminder system directly from HMRC.

What about paying the VAT due?

If you are filing your returns on line the corresponding payment should be made electronically or via direct debit.  If you are due a refund from HMRC this will be made to you electronically.

I’m currently trading below the £100,00 turnover threshold – should I register?

All businesses will eventually be required to file on line and there are some benefits of doing so, see below.

Benefits

One of the benefits of filing on line is that HMRC give you an additional 7 days to file the return.  If you pay by direct debit then the payment is usually taken around the middle of the month.  This effectively gives you an extra 2 weeks to pay your VAT liability.

A separate issue: EC Sales Lists
From 1 January 2010 businesses are required to submit an EC Sales List every month (rather than quarterly as now) if the value of their supplies of goods to other EU countries exceeded £70,000 (VAT exclusive) in the current quarter or any of the previous four quarters. You have 21 days from the end of the period to submit an electronic EC Sales List but only 14 days from the end of the period to ensure HMRC receives your paper EC Sales List.

Help is available

If you would like further assistance with on line VAT registration and filing or the submission of EC Sales Lists then please e-mail info@mooreandsmalley.co.uk or telephone your nearest office.

Sage software

Sage 50 accounts packages (version 2008 and above) and Sage Instant (version 14 and above) have been fully tested and achieved recognition from HMRC for filing VAT returns online.   These versions also include updates to the VAT module to assist businesses that trade in the EU to comply with the latest legislation changes.

If you would like more information about these products then please get in touch with a member of our Sage team on 01772 821021.