It’s easier than you think to submit your VAT return online to HMRC using accounting software

Filing your VAT return online increases speed, security and reliability. The use of a computerized accounting package can significantly help all companies to file their VAT returns online. To facilitate the online VAT refund procedure, it is important to keep all financial records up to date throughout the year. A good accounting software should make this really simple. As long as you keep accurate and meaningful records, you should be ready to submit your VAT details at the click of a button.

To complete your VAT return online, you must first register to use VAT online services through the HMRC website. Once you’ve signed up, you’ll be able to begin the process. Make sure you opt for a computerized accounting package that is compatible with HMRC’s online VAT system. There is a list on the HMRC website of all the programs that are accredited for online submission with them. You should be able to get an accounting package that allows you to send the necessary information directly to HMRC from within the accounting program. Before submitting the information, it is important to perform a final verification of the data being submitted.

Payment of any VAT due must also be made electronically. The amount due and due date will be shown on your statement. Payment can be made in a number of ways, including by debit/credit card and direct debit. It is vital to take note of the due date for payment and note that this refers to the date by which payment should be settled with HMRC. Consider and arrange the method of VAT payment in advance to ensure that the deadline is met.

While HMRC’s VAT Online Services system will keep a copy of your VAT return for 15 months, it is strongly recommended that you keep a physical record of the return. You must note the reference number of your shipment receipt and print all relevant documentation from your VAT return. Submit this together with any correspondence from HMRC regarding your return. This will help you ensure that you comply with UK law which states that you must keep all your business records for at least six years.

HMRC imposes strict deadlines on VAT returns and it is extremely important to adhere to them. Late filing of VAT returns and late payment of due VAT are likely to result in the application of fines. An accounting software, along with email reminders from HMRC’s VAT online services, can help you keep track of important dates and deadlines.