Toni Hunter's SuperBlog

The new ‘VAT online service’ (VOS) was launched by H M Revenue & Customs (HMRC) in November in prepartion for the compulsory online filing of VAT returns and electronic payment of liabiliies for VAT periods commencing 1st April 2010.

These new regulations will be enforced and effect all

• existing VAT registered businesses with a turnover (excluding VAT) of £100,000 or more (taken from the previous four returns submitted)
• businesses that register for VAT on or after 1st April 2010, regardless of turnover.

Once your business has been required to file online once, it must continue to do so.  The only exemptions are businesses involved in an insolvency procedure or those who have satisfied HMRC that the religious beliefs are incompatible with the requirement to use electronic communications!

If your business is VAT registered, you can expect to receive a letter from HMRC during February 2010 notifying you of your obligations.

There are proposals for this to be just the first step of the process and that all VAT registered businesses should manage their VAT returns and payments electronically from 1st April 2011.

The new VOS will enable users to

• Register for VAT
• Enrol for electronic filing
• View previously submitted electronic returns
• Set up email alerts to remind business owners of when returns should be submitted

Of course, if you do not want to be burdened with this, your accountant will be able to act as your agent in the same way as they can file payroll and self-assessment returns.  They will ask you to an authority to act (HMRC form 64-8 is not adequate for VOS) and may re-issue their letter of engagement to clarify the terms of this service.

More information can be sought from your accountant or HMRC’s online services website

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post

Self-assessment deadlines have changed – don’t be late!

H M Revenue & Customs (HMRC) are working hard to encourage businesses and individual taxpayers to file online to help them become more efficient and effective.  As part of this strategy they have changed the deadline if you wish to continue submitting a paper Return.

Generally, if you are sent a notice to complete a Tax Return you must return it completed before the later of 31 October following the end of the tax year and three months following the date of issue of the notice. Failure to do so will result in a £100 penalty regardless of the tax due. This is a significant change, so beware. (£100 per partner if the Return relates to a partnership)

For paper returns submitted by this date, HMRC will:

• calculate your tax for you (though you or your accountant can calculate it for yourself if you want)
• tell you what to pay by the following 31 January
• collect tax through your tax code (if possible) where you owe less than £2,000.

Returns sent via HMRC’s website or an electronic service provided by your accountant may be submitted up to 31 January.  There are many advantages of electronic submission which all our clients benefit from, the main ones being:

• Tax Returns are processed almost immediately and an acknowledgement of successful submission is provided.
• Your liability is calculated automatically and any refund due is issued by the system direct to your bank account.  Typically this occurs within 10 working days and saves banking and postage costs/time.  Manual processing can take weeks, sometimes months.
• PAYE coding notices are updated and re-issued without delay (if appropriate)
• The lack of ‘human’ intervention prevents processing errors and re-enforces the process now, check later strategy intended for Self-Assessment

There are a few situations where online tax returns can’t be made. In these cases the submission deadline is 31 January.

Companies House deadlines and penalties have changed too…..

If you operate your business through a Limited Company please be aware that the accounts filing deadline has been reduced by one month for accounting periods beginning on or after 6th April 2008.

A private company now only has 21 months from incorporation or in subsequent years nine months from its’ accounting period end to submit financial statements to Companies House.

From 1st February 2009 the late filing penalties imposed by Companies House have also become a lot more onerous.

If your accounts or Tax Returns are not up to date,

call us for a free no obligation consultation. 01480 426500

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

Just to make life a little more awkward for the average taxpayer, H M Revenue & Customs (HMRC) have changed the bank accounts to which you would normally make your PAYE and NIC payments.

As most businesses use CHAPS/BACS or internet banking for settling these regular liabilities, as encouraged by HMRC, this is a little irritating, but easily dealt with.  Please make sure any default settings are updated to show the new account details, which are:

HMRC Cumbernauld  08-32-10  a/c 12001039

or HMRC Shipley 08-32-10 a/c 12001020

 The old account will remain open for a short while, but it is recommended that the new accounts are used as soon as possible.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.