Contractors Cannot Escape the Online Only VAT Man

Since April of this year, all VAT-registered contractor businesses with a turnover of £100,000, along with all new registrants of the tax, have been required to file VAT returns and make VAT payments online.

Recently however, the taxman widened the net and HM Revenue & Customs (HMRC) announced that all VAT registered businesses must do their VAT returns online and pay VAT electronically from April 2012.

HMRC still allows the option of continuing to file paper returns by post if you registered for VAT before 1st April 2010. However from April of 2012 such businesses will have to follow suit and submit VAT returns electronically, along with making their payments the same way.

It is therefore vitally important that business owners who have not yet registered should ensure they do so as soon as possible to that they meet their obligations to HMRC..

We urge all VAT-registered companies to explore what HMRC's plans mean for them, and when, precisely. If your business intends to continue filing paper returns while they still can, you must be extremely careful not to forget about preparing to settle up with a VAT man who will eventually be online-only.

Should you have any questions regarding this, please do not hesitate to contact Tax Advantage and we will be able to assist you.