Compulsory online filing: VAT and PAYE
You may have received a letter from the VAT Office notifying you to file your VAT return online, or face penalties. This requirement to file online applies to VAT periods beginning after 31 March 2010. So you can file your VAT return for the quarter to 31 March 2010 on paper, but VAT returns for later periods must be submitted online.
Compulsory online filing also only applies to businesses with a turnover of £100,000 or more in the year ending 31 December 2009, as measured by HMRC. If you believe your turnover less than £100,000 in 2009, and you don't want to file your VAT online, you need to appeal against HMRC's decision within 30 days of the date of the letter. HMRC has not sent us a copy of the VAT letter, so please forward it on if you have concerns about the turnover condition. If you want us to submit your VAT returns online on your behalf we will need that letter as it contains some key details for the registration process.
Even if you have already filed several of your VAT returns online, and your turnover is over £100,000, you may still receive the notification letter. If your turnover is currently less than £100,000 per year, you don't have to file your VAT returns online just yet. But, the Government has announced that all VAT registered businesses will be required to file their VAT returns online for periods beginning from 1 April 2011.
If your business first registers for VAT on or after 1 April 2010 you will be required to file all your VAT returns online from your first VAT return, even if your turnover is way below the £100,000 threshold.