Doing VAT returns online…

Have you heard? HMRC are going to make it compulsory for businesses to submit VAT returns online. At the moment the full rules haven't been finalised but the current proposal is that this will apply to all businesses with a turnover of £100,000 and more and new VAT registrations from 1 April 2010.

Would this bother you? Are you concerned about the security of the system?

I know HMRC is concerned about security too and is working hard to make sure that the security issue is dealt with.

I also know that HMRC are also aware that some may think that this will change the whole way in which they do VAT. The only thing it is going to change is the way in which you submit your VAT return – you'll fill it in online, press the submit button, get a confirmation that the return has been received and that's it! Done!

For many businesses this will be an easy change to make – although there may be some reticence about making the move. I've been doing my returns online for some time. Alright, so I'm a VAT specialist and a bit of a geek and it might appear that I find these things really easy – I don't: it took me some time before i did my Tax Return online, rather than sending in a paper return. I understand that some of you will find it difficult to make the move. Think about it this way, all you are changing is the way you complete your VAT return. Instead of filling in nine boxes on a piece of paper you fill in nine boxes on the computer screen. You can print of the return you submit this way so you have a hard copy – I do and recommend that anyone doing their VAT return this way does too.

A couple of other things to bear in mind: you get an extra seven days to submit your return, and if you pay by direct debit your payment won't be taken until 

12 days or so after the real due date (i.e. the end of the month after the end of the VAT period) from your bank account.

As many of you will have to do your VAT returns online anyway, I encourage you to do it sooner rather than later. You can find all the details on how to do it on HMRC's website.

Your views, comments and questions are always welcome – use the comment section below.