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VAT-registered businesses are being urged to get ready now for major changes to VAT return filing and payment.

From 1 April 2010, businesses with a turnover of £100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically.

Businesses registering from 1 April 2010 will also have to file and pay electronically, whatever their size.

According to HMRC, filing online offers the benefits of being secure and convenient. The online service also does arithmetical checks and calculations for you and gives you an immediate acknowledgement that the return has been safely received. Businesses need to register for the VAT Online service by visiting the “New User” section at www.online.hmrc.gov.uk.

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