Here to help with online VAT filing
VAT affects transactions undertaken by individuals, partnerships, companies, trusts, charities and housing associations; each of these entities can find themselves considering wide ranging VAT issues and having to comply with various regulatory obligations.
One topic hitting the headlines at the moment is mandatory online filing of VAT returns. Currently all newly VAT registered businesses and any existing businesses with a turnover of more than £100,000 must submit online VAT returns. From 1 April 2012 however it will be mandatory for all VAT registered entities, regardless of level of income, to submit online VAT returns with two very limited exceptions which apply to insolvent businesses and certain religious groups, whose beliefs are incompatible with the use of electronic communications.
There are likely to be VAT registered entities that do not fall into either of these two categories but equally feel that they have the right to qualify for exception, due to their individual circumstances. There are currently three legal challenges to this proposal of mandatory online filing in the courts. Despite these challenges HMRC have maintained that they will not be issuing paper VAT returns after 1 April 2012 and they are encouraging businesses to start registering for online VAT returns as soon as possible.
So, what happens if you have never used or even owned a computer, or feel that you are not competent enough on a computer to use the online service? HMRC’s answer to this is that you can buy a computer, use someone else’s, or go to the library and use one there. While HMRC maintain they are more than happy to help over the phone, they have also confirmed that they will grant some leniency if a business has no internet access at all, and although they will still not issue a paper VAT return, they will allow VAT returns to be submitted by telephone.
Unfortunately, until we hear otherwise from HMRC, if VAT registered you should proceed to register for online VAT filing before 1 April 2012 and our VAT department will be more than delighted to assist you with this; please therefore feel free to contact us on 0131 558 5800 or email our Tax Partner Helen Mackenzie at helen.mackenzie@chiene.co.uk, or our VAT Director Lynn Gemmell at lynn.gemmell@chiene.co.uk
Chiene + Tait offer a resourceful and flexible service due to the depth and breadth of knowledge within the firm, and can provide comprehensive, tailored advice and assistance for your organisation. We are always more than happy to make your VAT obligations easier for you!