Question

I understand most VAT registered businesses have been required to submit their VAT returns online since April 2010. I did not move to Online VAT as my turnover was not over £100,000.  Can I continue to submit paper returns in the future?

From 1 April 2010, if your turnover was over £100,000 or you registered for VAT on or after that date, you automatically had to register to do your VAT return online and pay any VAT due electronically.  Everyone else could continue to do paper returns.

Now from 1 April 2012, all remaining VAT registered businesses will also have to submit their VAT returns online and make payment electronically  If you are still submitting paper returns we would strongly advise that you sign up to the HMRC online VAT service well before 1 April 2012 so you have adequate time to get familiar with the process and can also set up the electronic payment process.

Using the online system will normally give you 7 extra calendar days to submit your return and pay your VAT liability, unless you make annual returns or payments on account.

The only exemptions from the new online filing regime will be businesses subject to an insolvency procedure, although if you are subject to an approved voluntary arrangement, administration or trust deed you can still submit online if you wish. The only other exception to this is if your business is run by practicing members of a religious society whose beliefs prevent them from using computers.