Before you start to use our new VAT Filer program, you will need to ensure that you have set yourself up with HMRC, whether you are submitting your own VAT returns, or submitting on behalf of your clients.  We've distilled some of the advice from HMRC into this handy guide, which will have you up and running in no time.

 

 

Questions & Answers

 

Who has to switch to online VAT returns?

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 all your VAT returns online (including nil and repayment returns) even if your turnover drops below £100,000 in the future.

taken from: http://www.hmrc.gov.uk/vat/vat-online/moving.htm

 

How do I register and enrol to use VAT online services?

Before you can use VAT online services, you'll need to register with HMRC's Online Services. During the registration process you'll be able to enrol for various services, including VAT Online, which you can use to file a VAT Return online.

To enrol for VAT Online, you will need the following five pieces of information about your business:

1. your VAT registration number
2. the postcode of your principal place of business (if you're an overseas business use the postcode shown on your VAT4 Certificate of registration)
3. your effective date of registration for VAT
4. the final month of the last VAT Return you submitted
5. the 'Box 5' figure from the last VAT Return you submitted

You will be able to find the first two pieces of information on your VAT4 (Certificate of Registration); the third on the letter you received from HMRC confirming you must in future file online and pay electronically; and the fourth and fifth on the last VAT Return you submitted.

If you have recently registered for VAT and have not yet submitted a return you will need to select N/A for the 'final month of last VAT return submitted' and enter 0 (zero) for the 'Box 5' figure on last VAT Return submitted.

If the Box 5 figure for your last return submitted was a negative figure, you should enter the numbers without the minus sign (so it in effect becomes a positive amount).

If you have a business in the Isle of Man, you’ll first have to contact the Isle of Man Customs and Excise, to confirm the five pieces of information about your business.

Activating your account

You'll be able to submit any VAT Returns that are due as soon as you've registered and enrolled.

To be able to use other VAT online services you'll need to wait for an Activation Code (also known as an Activation PIN) to be sent to you by post. The envelope will be marked 'Government Gateway'.

You'll need the Activation Code to:

• update your VAT registration details
• submit your EC Sales List using the online service (ECSL)
• submit your Reverse Charge Sales List (RCSL)

Your Activation Code can take up to a week to arrive. Also bear in mind that your Activation Code is only valid for 28 days. If you don't activate the service within that period, you'll have to re-enrol for the service and wait for the new Activation Code to arrive by post.

If you lose your Activation Code before the 28 days have expired, then a new one can be requested online. Just log into your account and follow the instructions.

Register and enrol to use VAT online services

If you've already enrolled for other online services

You may have already signed up for other HMRC online services, such as Self Assessment Online or PAYE Online for employers. To add VAT Online to the services you use, take the following steps:

1. Log on to HMRC Online Services with your existing User ID and password.
2. On the 'Your HMRC Services' page under the 'Services you can add' section, select 'VAT' and 'Enrol for service'.
3. Type the five facts about your business, so we can be sure who you are - see above.

When you've enrolled for VAT Online, you can start using some of the services immediately - such as submitting your VAT Return, if one is due. HMRC will send you an Activation Code so you can use the full range of services offered within VAT Online.

Taken from: http://www.hmrc.gov.uk/vat/start/register/signup-online.htm

 

Using an accountant to submit your returns online

Before an accountant (or agent) can submit your VAT Return online for you, they will have to register to use HMRC Online Services and enrol for the VAT for Agents online service. Once they have done that, you should both follow these simple steps.

1. Your accountant should go online and set themselves up as your 'agent'.
2. You will then receive a letter asking you to confirm the request. The letter will contain a unique Authorisation Code.
3. If you agree to the authorisation, simply pass the code immediately to your accountant and they will enter it online. It's as straightforward as that.

The authorisation code is valid for 30 days from the date of the letter. If it is not activated within 30 days then steps 2 and 3 will need to be repeated.

Your accountant can choose to submit your VAT Return using either HMRC's free online service or a commercial software package.

 

Paying your VAT electronically

If you submit your VAT Return online, you must make payment electronically. Paying electronically will normally entitle you to up to seven extra calendar days to submit your return and pay your VAT, unless you make annual returns or payments on account. The extended due date will be shown on your online VAT Return and you must ensure that cleared funds reach HMRC's bank account by this date. If your payment arrives later than this you may be liable to a surcharge for late payment.

 

Taken from: http://www.hmrc.gov.uk/vat/vat-online/submit.htm

 

You can find instructions on how to pay your VAT electronically at http://www.hmrc.gov.uk/payinghmrc/vat.htm

 

How can I file online urgently?

 

If you need to file a VAT return urgently, it is possible to do so on the same day - simply register and enrol using the instructions above.  You won't have full access to the HMRC VAT services until you have entered the Activation PIN, but you will be able to submit the return.  If you are an agent who needs to file on behalf of a customer on the same day, it is still possible:

If the client has a Government Gateway login and has already enrolled for VAT, they just need to log in and use the Appoint Agent option, enter your agent identifier, and you will be able to submit the return the same day.  If the client isn't enrolled for VAT, you can complete the registration and enroll them on their behalf (with their permission), and then use the Appoint Agent option yourself.

Please note, if you use the same day method, the client will still need to enter the activation PIN once it arrives; the Appoint Agent process doesn't act as a 64-8, so you won't have full access to all the VAT services, and HMRC won't talk to you about the client until this step has been completed.