News
September 2008
On-Line Filing of VAT Returns – The Benefits
An important part of HMRC’s business strategy is to encourage more taxpayers to file their VAT returns on-line. The current number of returns that are filed on-line is less than HMRC would like – but the benefits are very worthwhile for all registered businesses:
- No postal problems to worry about
- On-screen help in completing the return - when a return is filed online, there is on-screen information to help complete the return, as well as automatic calculations and checks to reduce errors. This reduces the risk of a VAT return being sent back for correction.
- Acknowledgement of filing – you can be sure that returns have been successfully filed because of an immediate on-screen acknowledgement and reference number.
- Cash flow benefits – an extra seven calendar days are given to submit VAT returns online. An additional three further working days are given (payment by direct debit) before payment is taken from a taxpayer’s bank account.
Consider the following example:
The deadline date for a business submitting its September 2008 in paper format is 31 October.
However, the business gets an additional seven calendar days to file its return on-line (by 7 November) and an extra three working days before the direct debit payment is taken from its bank account. As 8 and 9 November are weekend days, the direct debit for the return will not therefore be taken from its bank account until Wednesday 12 November. This extension provides useful cash flow benefits.
At Artaius where we submit clients VAT return on their behalf we will be starting to register clients for online VAT filing in order that our clients can take the benefits that online filing brings.
For further details about on-line VAT filing or any other VAT issues, contact Neil Warren.
