Your Guide to Online VAT Returns
From 1 April 2010 it became mandatory for many VAT registered businesses to switch from paper to online VAT Returns. From that date, if your annual turnover on 31 December 2009 was £100,000 or more (exclusive of VAT) - or if you became VAT registered after 1 April 2010 - you now have to submit your return online and pay VAT electronically.
Step 1 – Register and Enrol for On-Line 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:
- your VAT registration number
- the postcode of your principal place of business (if you're an overseas business the postcode shown on your VAT4 Certificate of registration)
- your effective date of registration for VAT
- the final month of the last VAT Return you submitted
- the 'Box 5' figure from the last VAT Return you submitted
You will be able to find this information from your VAT4 (Certificate of Registration) and 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).
AFTER STEP 1 YOU WILL BE ABLE TO SUBMIT YOUR VAT RETURNS
Step 2 – Wait for PIN (purely for other services)
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 request a new Code online and wait for it to arrive by post.
Step 3 – If you are ALREADY signed up for on-line services (e.g PAYE or Self Assessment)
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:
- Log on to HMRC Online Services with your existing User ID and password.
- On the 'Your HMRC Services' page under the 'Services you can add' section, select 'VAT' and 'Enrol for service'.
- 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 immediately start using some of the services - such as submitting your VAT Return. HMRC will send you an Activation Code so you can use the full range of services they offer.
Paying your VAT online
If you file online, then you must make a payment of any VAT due online (e.g by Direct Debit or Internet Banking).
In most cases, paying electronically gives you up to seven extra calendar days in which to pay - or at least ten calendar days if paying by Direct Debit online (extra days are not available for example to large payers who make payments on account).
If the VAT payable to HMRC on your return is less than £1, then you don't need to pay anything to HMRC or carry the amount forward.
HMRC's bank account details
Sort code |
Account number |
Account name |
08 32 00 |
11963155 |
HMRC VAT |
You must give your VAT registration number as the reference number which is made up of nine digits.
If you have any questions on this or any other VAT matter - we can help: contact us today
