From April 2010 you will have to submit your VAT Returns online, and pay any VAT due electronically, if either of the following applies:
• You have an annual turnover of £100,000 or more (exclusive of VAT)
• You register or should have registered for VAT on or after 1st April 2010 (regardless of your turnover)
If you fall into either of the groups mentioned above, you will have to file all your VAT Returns online (including nil and repayment returns) even if your turnover drops below £100,000 in the future.
You will also have to make arrangements to pay your VAT liabilities electronically.
You won't have to submit your VAT Return online and pay electronically if you registered for VAT before April 2010 and your turnover stays below £100,000. You will still be able to submit your return on paper but this may change in 2012.
If you think you will have to submit your VAT Return online from 1st April 2010, you should take the following action now:
• Identify your preferred form of electronic payment (e.g. Direct Debit, Internet Banking) and set up the necessary arrangements
• Register and enrol for the VAT Online service. (You will need to do this to submit your VAT Return online, whether you choose to use commercial software or HMRC's free software)
• Consider whether you need to change any of your business processes for checking and signing off your VAT Return
