News - January 2010

VAT payments change

29th January 2010
From 1 April, virtually all VAT registered businesses will face a significant change in how things are done, leading to potential problems.

From that date both VAT returns and payments must be completed electronically, if the business has a turnover in excess of £100,000.

Because HM Revenue & Customs has extensively publicised the changes, having no access to a computer, or no broadband connection will not be a valid excuse - despite certain parts of East Anglia having well documented broadband problems.

“It is inevitable businesses with a turnover of less than £100,000 will not escape for long, perhaps a couple of years,” said Steven Rudd, a partner with chartered accountants and financial advisors, Larking Gowen, based in Norwich.

“This also means businesses will have to be able to pay electronically, cheques will not be accepted. Those companies not complying may be penalised. One option for business owners worried about the changes is to contact their accountant who may well be registered with the HMRC as agents for on-line tax submissions.”

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