IDL Systems is a UK based Company and ONLY deals with the best and well
established Suppliers.
Businesses preparing for online filing of VAT returns next year have a long way to go. From April 2010 VAT returns are subject to mandatory online filing for businesses with turnover of more than £100,000. The number of returns currently filed online, however, is still quite low. There are around 1.95 million VAT registered businesses at the moment. Getting a precise figure on how many file online is quite difficult as businesses may file their returns monthly, quarterly or annually. However, HMRC has been able to provide the following data : By 30 September returns filed so far this year are 3.34 million returns on paper, and 655,000 online returns – so around 16% of returns filed so far this year have been filed online.
Although we have no figures for the number of VAT registered businesses with turnover of less than £100,000, it is clear that there is a massive challenge to businesses to step up to the mark with VAT online filing. Agents will need to play their part in advising VAT registered clients about the changes, and some may provide a service to help clients file online.
Developments in the HMRC online services due next month will simplify the process of gaining authorisation to file VAT returns online, so that clients will no longer need to be registered with the Government Gateway to allow the agent to act for them in respect of VAT online.
Smaller businesses wishing to file their own returns online will not need to purchase software – the HMRC VAT Online interface is simple to use, and generates an email reminder to businesses when the VAT return is becoming due. Some accounting packages have a VAT Online interface, enabling users to file their returns without going to the HMRC website.
is one of the products
that has been set up to do this.
Agents preparing for online filing of client VAT returns should think now about the approval process, as the new penalty legislation requires the client to approve his returns before they are filed. Agents will probably wish to consider this step carefully in setting up their systems to support clients with the move to VAT online.
