HM Revenue
& Customs (HMRC) is urging businesses to get ready for
major changes to VAT and PAYE coming in this spring.
The following VAT changes come into effect on 1 April:
· VAT-registered traders with annual turnovers of £100,000 or
more (excluding VAT) will have to file their VAT returns online
and pay their VAT electronically;
· All businesses registering for VAT from April will have to file
their returns online and pay electronically;
· All VAT cheque payments sent by post will be treated as being
received by HMRC on the date when cleared funds reach HMRC’s bank
account – not the date when it receives the cheque. Businesses
must allow enough time for their cheque to reach HMRC and to clear
its account no later than the due date shown on their VAT return,
or they may be liable to a surcharge for late payment. However,
this change does not affect any cheque payments made by Bank Giro; and
· Anyone issuing an invoice that includes VAT, when they are not
entitled to charge it, will be subject to a new VAT wrongdoing
penalty. The penalty charged will be a percentage of the amount
charged as VAT on an unauthorised invoice.
From May, two key PAYE changes come into effect:
· All employers must file their Employer Annual Return (P35 and
P14s) online by the 19 May deadline – there is no longer a paper
filing option for small employers with fewer than 50 staff. File
your return on paper, even if it’s before 19 May, and you could
receive a penalty.
· HMRC is introducing new penalties for late payment of PAYE.
Under these changes, employers and contractors may incur penalties
if they don’t make payments of PAYE, National Insurance
contributions, Construction Industry Scheme deductions and student
loan deductions on time, and in full. Penalties will be calculated
as a percentage of the late amount and, for in-year payments, the
percentage charged increases as the number of late payments in the
year increases.
To file your VAT or PAYE online, you must first register with
HMRC’s online services by visiting www.online.hmrc.gov.uk,
clicking “Register” under the “New user” section and then
following the instructions.
Stephen Banyard, Director of HMRC’s Business Customer Unit, said:
“If you’re a VAT-registered trader or an employer, make sure
you’re up to speed with all the VAT and PAYE changes coming in
this spring. If you’re well prepared for the changes, you’ll help
avoid a last-minute rush when the new measures take effect.”
HMRC recently launched a ‘super podcast’ covering the VAT and
PAYE online filing changes, as well as changes to corporation tax
filing and payment coming in next year. It can be downloaded free
from HMRC’s podcast pages at www.hmrc.gov.uk/podcasts.
Further information on all the changes is available on the HMRC
website at www.hmrc.gov.uk.
Issued by HM Revenue & Customs Press
Office
Press enquiries only please contact:
Contacts:
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk
Jan Marszewski
Phone: 020 7147 0798
jan.marszewski@hmrc.gsi.gov.uk
Darlene Coker
Phone: 020 7147 2333
darlene.coker@hmrc.gsi.gov.uk