Letter to clients - VAT Online by p0mk8


									Online filing of VAT returns

You may be aware that the Government is moving forward with the plan to implement online filing
for most business tax returns. The next phase of this it to require businesses to file their VAT returns
online from April next year. This requirement will apply to all businesses with annual turnover of
more than £100,000, which means that your business will be affected by this change.

Your first return which will be affected by the new rules will be the return for the period ended
(enter date), which must be filed online and paid by electronic payment, which includes BACS,
Billpay and Direct Debit. It would be wise to start thinking about how you intend to move to online
filing for VAT in the run up to that date.

Optional paragraphs depending on your service intentions:

We shall be filing your return online on your behalf, so there are no particular steps you need to take
to prepare for this. We shall be arranging to act as your agent for online VAT services, and you may
receive notification from HMRC of this, with an activation code. Please advise us as soon as this
arrives, as it enables us to complete the electronic authority to act.


As you currently file the VAT returns for the business, you will need to register for VAT online prior
to April 2010 in readiness. This is a fairly simple process, but to do so you will need the last VAT
return you have filed, and the date the business registered for VAT, which is shown on your VAT
registration certificate. If you are not able to locate this, you can obtain the date from HMRC VAT
advice line on 0845 010 9000. There is lots of information on VAT online on the internet at
www.hmrc.gov.uk/vat/vat-online/index.htm and HMRC is also running free training sessions in
(insert location) on (insert date) at which advisors will explain all of the steps to registering for VAT
online. If you would like to attend you should book your place by email to
marketing.online@hmrc.gsi.gov.uk showing the date and location in the subject line.


As you currently file the VAT returns for the business, you will now need to consider whether you
are happy to register for VAT online and continue to file returns yourself, or whether you wish to
appoint us to file online on your behalf. You can find out more about what is involved in filing VAT
online here: http://www.hmrc.gov.uk/vat/vat-online/index.htm . If you would prefer not to file
online yourself, do let us know by (insert your chosen date) to allow us time to register as your
appointed agent for VAT Online.
All clients

Whatever your decision about filing VAT returns online, you will also need to make arrangements to
pay your VAT liabilities electronically. You can use an internet bank account, or there is a wide
variety of other ways in which you can make electronic payment, but the simplest method is to set
up a Direct Debit authority under which your VAT is collected three working days after the due date
for each return. You will have an extra 7 days to file your return when using the online service, so
returns are due on 7th of the month. This means your VAT would normally be paid between 10th and
12th of the following month after the normal due date for the return. More details about online
payment methods are here: http://www.hmrc.gov.uk/payinghmrc/vat.htm , including details of how
to register for Direct Debit, which is done after you have registered to file returns online. Optional : If
we are arranging to register you for Online VAT we will contact you again to advise you when to set
up a Direct Debit authority.

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