Taking Account

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  • Taking Account

Are you ready for online filing?

December 2009

2010 sees major developments in the Government’s overall strategy to implement universal delivery of business tax returns by 2012. Readers should ensure they are ready.


1. Businesses with turnover in excess of £100,000 will be required to file returns for quarters ending 30 June 2010 and thereafter.
2. Newly registered traders will be required to file their VAT returns online for periods starting after 31 March 2010. This means that any business registering with an effective date of 1 April 2010 or later will move straight to online filing of VAT returns.

Paper filing for very small businesses is offered as a continuing option but this may change during 2011.

Self assessment

Those who prefer to file returns on paper must do so by 31 October after the end of the tax year, while those who file online have until 31 January following to make their return. Payment may also be made by any method chosen by the taxpayer – and extra methods of payment are being introduced, including payment by credit card and a scheme to allow tax liabilities to be spread, which will be introduced from April 2010.

Payroll returns – small employers (under 50 employees)

Small employers are required to file their yearend return online in respect of 2009-10. Accordingly they will need to prepare during the coming months for their first annual online return next year.

Payroll returns – large employers (50 or more employees)

Large employers are already required to file year end returns online.

But note changes also have to be notified online. Those employers who continue to file forms P45 and P46 on paper from January 2010 will face a penalty for each form filed on paper.

Hilton Sharp & Clarke