Bury Business
New rules for VAT returns
11:28am Thursday 25th March 2010
THIS month Wendy Greensitt-Black of Bury-based Horsfield & Smith Chartered Accountants and Business Advisers, looks at compulsory online filing for VAT and PAYE returns IF you have a business that meets the new rules for online VAT filing, then you will receive a letter from HM Revenue and Customs (HMRC) informing you of the changes.
The new rules affect businesses that have an annual turnover, excluding VAT, of £100,000 or more. Also, all businesses newly registered for VAT on or after April 1, no matter their turnover, will need to submit their returns and payments electronically as from that date.
Once a business has to file online, it must carry on doing so even if its annual turnover falls below the £100,000 limit later on. The requirement to file electronically will also cover nil and repayment returns.
All other businesses can continue to submit paper returns and to make payments by post. This will be reviewed between now and 2012.
New businesses without a full year's VAT history may be told that they will have to submit online if HMRC calculates that their turnover will be more than £100,000.
Professional advice should always be sought as individual circumstances may differ Wendy can be contacted on 0161 761 5231 or email wendyg@horsfield-smith.co.uk