02/10/2018
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It is now mandatory for all VAT registered traders with a turnover of £100,000 or more and all newly registered traders to submit returns and pay VAT electronically.
Many traders who should be making the change have not yet done so. There are also very many traders who do not have to make the change, but for whom the change to online returns and payments would be beneficial.
Each month I talk to members who have been fined for late returns and late payments which were only a couple of days late. They are surprised and hurt, and often have posted returns and cheques in good time but have no evidence of posting.
View the table below to see the advantage of online returns
|
Accounting Period |
Standard due date for paper filing
|
Extended due date for online filing with electronic payment |
|
April – June |
30 July 2010 |
7 August 2010 |
|
May – July |
31 August 2010 |
7 September 2010 |
|
June – Aug |
30 September 2010 |
7 October 2010 |
|
July – Sept |
29 October 2010 |
7 November 2010 |
|
Aug – Oct |
30 November 2010 |
7 December 2010 |
|
Sept – Nov |
31 December 2010 |
7 January 2011 |
|
Oct – Dec |
31 January 2011 |
7 February 2011 |
|
Nov – Jan |
28 February 2011 |
7 March 2011 |
|
Dec- Feb |
31 March 2011 |
7 April 2011 |
|
Jan – March |
29 April 2011 |
7 May 2011 |
|
Feb – April |
31 May 2011 |
7 June 2011 |
You get 7 more days and can file on the day itself if pushed, plus you can get HMRC to send you email alerts to remind you that a VAT return is needed as a deadline approaches.
An even bigger advantage can be had if you agree to pay by electronic method. It is really important to consider this – so many members get caught paying a few days late simply because they forgot, or paid by a cheque held up in the post.
Since 1 April 2010, HMRC will only treat a cheque as received when cleared funds reach their bank account. This is a major change and will make many more cheques ‘late’. (Previously they treated a cheque as received when they received it in the post).
Remember that even a BACS payment normally takes three bank working days to clear – and some take longer. The only ‘other electronic’ method that is immediate is CHAPS. Have a look at the extra time you get – and cash flow advantage – for an online VAT Direct Debit.
Due dates for paying VAT
|
Accounting period |
Cheques by post must be cleared |
Payment by online VAT direct debit |
Payment by BACS or CHAPS |
|
Apr – Jun 2010 |
30 July 2010 |
11 Aug 2010 |
6 Aug 2010 |
|
May – Jul 2010 |
31 Aug 2010 |
10 Sept 2010 |
7 Sept 2010 |
|
Jun – Aug 2010 |
30 Sept 2010 |
12 Oct 2010 |
7 Oct 2010 |
|
Jul – Sep 2010 |
29 Oct 2010 |
10 Nov 2010 |
5 Nov 2010 |
|
Aug – Oct 2010 |
30 Nov 2010 |
10 Dec 2010 |
7 Dec 2010 |
|
Sep – Nov 2010 |
31 Dec 2010 |
12 Jan 2011 |
7 Jan 2011 |
|
Oct – Dec 2010 |
31 Jan 2011 |
10 Feb 2011 |
7 Feb 2011 |
|
Nov – Jan 2011 |
28 Feb 2011 |
10 Mar 2011 |
7 Mar 2011 |
|
Dec – Feb 2011 |
31 Mar 2011 |
12 April 2011 |
7 April 2011 |
|
Jan – Mar 2011 |
29 April 2011 |
11 May 2011 |
6 May 2011 |
|
Feb – April 2011 |
31 May 2011 |
10 June 2011 |
7 June 2011 |
|
Mar – May 2011 |
30 June 2011 |
12 July 2011 |
7 July 2011 |
Just imagine a payment for the quarter July – September 2010. A cheque that was to be cleared funds by 29th October would probably have to be sent by 19th October at the latest to be safe. A VAT Direct Debit online would not need to be actioned until 10th November – giving an extra three weeks leeway.
If you would like to see the HMRC guidance go online to the Business Link website www.businesslink.gov.uk and type in VAT payments and deadlines. You can also create a calendar of your own VAT deadlines on the Business link website –
