HM Revenue & Customs (HMRC) has issued a leaflet, warning VAT-registered businesses to get ready now for major changes to VAT return filing and payment, that will come into force next April.

The leaflet has been sent to all 1.9m VAT-registered businesses to alert them to the fact that, from 1st April 2010, those with an annual turnover of £100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically.

Under the changes, businesses registering for VAT on or after 1st April 2010 will also have to file their return online and pay electronically, whatever their turnover.

To file a VAT return online, businesses new to HMRC’s online services need to register for the VAT Online service. Once there, just click “Register” under the “New user” section and then follow the instructions. Current HMRC online service users can add VAT Online to their portfolio in the ‘Services you can add’ section of ‘Your HMRC services’.

HMRC’s Stephen Banyard said:

“Filing your VAT return online has a number of benefits: it’s secure, convenient, does arithmetical checks and calculations for you, and provides you with an immediate online acknowledgement that your online return has been safely received by us.

“So, if your turnover is £100,000 or more, and you’re not already filing your VAT return online, sign-up now for VAT online services – that way, you’ll avoid a last-minute rush, and be able to enjoy the benefits of online filing sooner rather than later.”

HMRC will also be sending formal letters, in February 2010, to all existing businesses affected by the new online filing and electronic payment requirements, confirming that in future they must file online and pay electronically. And, from 1st April 2010, a letter explaining the requirement to file online will be included in all registration packs issued to newly registering VAT businesses. Both letters will be accompanied by a handy guide on registering for VAT Online.