VAT Returns – Compulsory online filing has benefits
It has now been nearly nine months since HM Revenue & Customs have stipulated that all VAT registered businesses should file their VAT returns online, apart from a number who are exempt. But some may say, what are the benefits of VAT online?
1. Security – all transactions are 100 per cent as they’re encrypted to the highest commercial standards. With a unique ID and password you or someone you authorise can have access to that information.
2. Speed – going through the online registration and enrolment process (which you need only do once) takes just a few minutes.
3. Convenience – the online services is available 24/7, whenever best suites you.
4. Accuracy – there are automatic checks to help reduce errors, meaning there is less chance for H M Revenue & Customs to send it back to you for it to be corrected or to be clarified.
5. Reliability – you don’t have to worry about your return being lost or delayed in the post especially this time of year, as you will get an on-screen acknowledgment as soon as you submit your return.
An added incentive to get your VAT return in on time is that if you have a refund due, H M Revenue & Customs will usually pay this within a few days of your VAT return being submitted. Also to aid in the cash flow of your business you can setup a direct debit for HM Revenue & Customs to take the amount of VAT recorded on your VAT return on the third bank working day after the VAT return is due.