Since April 2012, VAT-registered companies must file all VAT tax returns on the internet and settle any due VAT through "electronic methods". There are only a handful of exceptions to this rule which are mostly for those who find it impossible to utilise the internet.
Setting up yourself online
If you're already online and previously used various other web-based HMRC services, you could have submitted PAYE or Construction Industry Scheme (CIS) returns, tax returns for corporations or self-assessment tax returns online. It's necessary to add the VAT Online service to your existing HMRC services to filing vat returns online . This can be done on"Your HMRC Services" or "Your HMRC Services" page after you've signed in to HMRC Online.
If you've never used any of the HMRC online services prior to now, you will need to enrol in HMRC Online and in the process, you will be able to enrol in VAT Online.
To enrol for a membership with HMRC Online you need to visit HMRC's website. HMRC site www.hmrc.gov.uk On the upper left corner of the homepage you will find an "Do it online" section. Select"Register" in the "Register (new new users)" button and adhere to the steps.
During the process of enrollment you will be asked to create an account with a password. Additionally, you will be provided with a User ID. This is an array of numbers or letters and numbers. It is important to take note of the User ID since you'll need it and your password to log back to all HMRC Online services. It is only the one instance you'll be able to see this ID.
If you're registering to use VAT Online either as an existing HMRC Online user or as an initial user, you'll require five details. Make sure you have these documents ready prior to when you begin the enrollment process.
You will need your VAT Registration numberThe postcode of your primary location of businessThe date that you first registered for VAT.The month that ended the VAT return that was submittedThe figure is in Box 5 on the latest VAT return that was submittedNotes
Your "principal location of business" will be the location you have listed on your VAT Certificate Registration or on the tax returns in paper.
The date that you first registered is also listed on your VAT Certificate Registration. If you've lost your Certificate, you can request HMRC to email you a confirmation of this date.
If you haven't yet filed a VAT return, the website will tell you which information to fill in for the final two items of information.
If all details entered are correct, you will be enrolled in Online VAT. You will receive the Activation Code. This is required to access certain online VAT services. It is not necessary to keep waiting around for your Activation Code in order to be able filing VAT returns online.
After you have enrolled, you are able to complete your VAT returns through the free service available through the HMRC website, or If you have VAT tax returns created by the accounting software you use it is possible to file the returns with the software.
What if I'm not able to make a file online
If you don't are connected to the internet or don't want to file your own returns We suggest that you speak to your tax professional or accountant whether they are able to file VAT returns online on your behalf. The majority of accountants and tax professionals are able to do it for you. It's an additional service we provide.
If the agent who is filing VAT returns online, it is still required to pay VAT using electronic methods.
Electronic Payment
In addition to you being required to file VAT returns online, you'll be required to settle the future VAT liability through "electronic" signifies. That's not what it is referring to in the sense that you are able to make payments by cheque, however you must use specific Bank Giro payslips to pay it to a bank, instead of sending the cheque to HMRC. The electronic method of payment can extend the time frame for payments by seven days. But, HMRC requires clear funds on the seventh day, so you should take into account closing times on weekends, bank holidays and weekend days. Take note that HMRC does not currently take "faster payments" that are offered by certain institutions and banks. Therefore, you should determine the standard clearing time for electronic payments.
The most straightforward method to pay is to establish an automatic debit to HMRC. This can be accomplished via the online VAT services after you have the activation code. Direct debit payment will delay the payment for an additional 3 days, on top of the seven days mentioned above.
Payments can also be made using:
Internet and telephone bankingBACSCHAPSCredit card or debit card via the BillPay serviceBank Giro using the pre-printed slips from HMRC.The step-by-step guideline is available on the HMRC website. There are also online tutorials you can use to teach you how to enrol and make use of these online tools. We are also available to get help or advice.
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