Randall & Payne tax expert Lucie Hammond says prepare now for the switch from paper to online VAT services.

From 1 April 2010 you will have to submit your VAT Returns online and pay any VAT due electronically if either of the following applies:

• you have an annual turnover of £100,000 or more (exclusive of VAT)
• you register or should have registered for VAT on or after 1 April 2010 (regardless of your turnover)

If you fall into either of the groups mentioned above, you will have to file your VAT Returns online (including nil and repayment returns) even if your turnover drops below £100,000 in the future.
You won't have to submit your VAT Return online and pay VAT electronically if you registered for VAT before April 2010 and your turnover stays below £100,000. You will still be able to submit your VAT Return on paper but this may change in 2012.
You may want to switch to using the online service sooner - it will save you time and, in most cases, will give you extra days to submit your return and pay the VAT due.
If you are required to submit your VAT Returns online and pay your VAT electronically you will receive a letter from HMRC in February 2010 informing you of this.  If you want to appeal against HMRC’s decision you should wait until you have received this letter to do so.
If you think you will have to submit your VAT Return online from 1 April 2010, you should take the following action now:

• Identify your preferred form of electronic payment (eg Direct Debit, Internet banking) and set up the necessary arrangements.
• Register and enrol for the VAT online service.
• Consider whether you need to change any of your business processes for checking and signing off your VAT Return.

To speak to Lucie Hammond about preparing your business for the switch to online VAT returns and payments email ljh@randall-payne.co.uk or call Randall & Payne, Stroud on 01453 763471.