With effect from 1 April 2010, if the value of your annual sales is more than £100,000 it will be compulsory for you to file your VAT returns online. You will also need to file online from this date if you are newly registered for VAT.

The benefits of online filing are very worthwhile:

• You get an extra seven calendar days to file your return, eg to 7 September 2009 for your July 2009 return.
• You also have three more working days before payment of any tax is taken by direct debit from your business bank account. This means you get an extra five calendar days if a weekend is involved, ie until the 12th day of the month.
• You don’t have to worry about the post. When you have completed your VAT return, a printed acknowledgement is sent to confirm that HMRC has received the return.

The online process will alert you to basic errors made in completing the return and some of the boxes are completed automatically.

It is important that you register for online filing as soon as possible to avoid any last-minute rush as the deadline approaches.

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