Business Leaves On-line Filing To The "Last Minute"
Now a Tamworth based VAT consultant has said that many companies may find that they are unable to register on-line because of the strain it will place on HM Revenue and Customs IT systems.
Jason Croke, VAT consultant at the Tamworth office of Haines Watts, said businesses needed to act now if they were to stand any chance of succeeding.
“HMRC estimates that 15% of VAT registered businesses already file and pay returns on-line. It is reckoned there are two million VAT registered businesses in the UK and whilst not all of these will need to file on-line because their turnover is below the current threshold of £100,000 per annum, it is still going to put a lot of strain on HMRC IT systems – especially if taxpayers choose to leave it until the last minute,” said Mr Croke.
By April 2010, all VAT registered businesses, with a turnover of £100,000 per annum or more will have to submit and pay their VAT returns on-line.
“There are a number of benefits of filing on line. There are no postal delays or cheques lost in the post. The on line system performs basic checks to ensure figures are accurate and, a particular bonus, HMRC allows a further seven days in which to pay the VAT beyond the VAT return due date – so bringing a small but valuable cashflow benefit.”
However, many of his clients have reported that the registration process can be unfriendly – as it requires details that may not be to hand in order to finalise the registration. Staff need training on how the on line system operates and new controls will need to be implemented to ensure that VAT returns are submitted at the right time, by an authorised person.
“Some businesses still don’t have a computer or internet access – just think of market traders for instance. Some may have security concerns – but the day of reckoning will come”
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Date: 20-11-2009