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This should be the year in which businesses seriously consider filing their VAT returns online, according to independent VAT consultant Neil Warren.
It will be compulsory for firms with an annual turnover of more than £100,000 to file online after April 2010, a measure that is expected to immediately increase the 14% filing figure to at least 65%.
It will also be a requirement for newly registered businesses to submit returns online and pay VAT by electronic means from the same date.
So, 2009 is an ideal opportunity to prepare for compulsory filing, said Mr Warren.
He remarked: ‘I was quite surprised to learn that only 14% of VAT returns were filed online for the eight-month period up to 30 November.
'This is a very low figure considering the convenience and cash flow benefits. A business filing its return online can get up to 12 extra days to pay the VAT it owes compared to the traditional paper return and cheque method.’
Neil also pointed out that HMRC withdrew prepaid business reply envelopes from 1 October 2008, a measure that will save the department £8 million a year.
He added: ‘It sounds very basic, but I am sure situations will arise where a business reply envelope is posted with a second class stamp instead of a first class stamp, or no stamp at all, creating a default surcharge problem when the return arrives late.
'This risk can be avoided by online filing.'
