Since April 2010 most VAT-registered businesses have been required to submit their VAT Returns online and pay any VAT due electronically. HM Revenue & Customs (HMRC) plan, from 1 April 2012, to extend this requirement to all VAT-registered businesses, apart from a very small number who will be exempt.
 
Those registered for VAT before 1 April 2010 with a VAT-exclusive turnover of less than £100,000 - will also have to submit VAT Returns online and pay any VAT due electronically.

If you are still submitting VAT Returns on paper, we would advise you to sign up to the online service before April 2012, so that you have time to get familiar with the new service. It is quick and easy to use, and in most cases gives you extra time to submit your return and pay any VAT due.

The VAT Online filing service has a number of useful features that you need to be aware of, to get the best from the service:

• Security - all transactions are 100% secure as they're encrypted to the highest commercial standards. You get a unique User ID and create a password to keep your details safe. This allows only you - or someone you authorise - to have access to that information.
• Speed - going through the online registration and enrolment process (which you need to do once only) takes just a few minutes. You'll be able to submit your return as soon as you've signed up to VAT Online services - you don't have to wait for an Activation Code to arrive in the post.
• Convenience - the online service is available day and night, whenever is best for you.
• Accuracy - there are automatic checks to help reduce errors, meaning there's less chance of having your return sent back to you to be corrected or for clarification. In particular, the service automatically calculates and enters for you the figures for boxes 3 and 5 (based on the information you have entered on the online form for boxes 1, 2 and 4).
• Reliability - you don't have to worry about your return being lost or delayed in the post as you'll get an on-screen acknowledgment - including a unique submission receipt reference number - when you submit your return. You can print this out, if you wish, along with a copy of the completed return.
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