April VAT alert
HM Revenue & Customs (HMRC)
has issued an alert to VAT-registered businesses across the UK about
important changes that come into effect this spring. From 1
April 2012, all VAT-registered businesses must send their VAT
returns online and pay their VAT electronically. Currently, only
newly-registered businesses, and those with turnovers of more than
£100,000, have to file and pay their VAT online. The new rules
will cover VAT returns filed for accounting periods beginning on or
after 1 April 2012. If you’re not already filing your VAT
online, switching now makes sense. By doing this, you’ll avoid a
last-minute rush, and be able to enjoy the benefits of online filing
sooner rather than later. These benefits include:-
► an automatic acknowledgement that your
return has been received;
► a handy arithmetic checker to help make
sure you’ve done your sums correctly;
► an email alert to remind you when your
next online return is due (as, after April, HMRC will stop sending
out paper returns to customers who are now required to file online).
To file your VAT return online, you’ll need to register for HMRC’s
VAT Online Service – visit:-
online.hmrc.gov.uk and click
“Register” under the “New user” section. Then follow the
Affected businesses will also need to set up their preferred
electronic payment method. To find out more all you need to do is
for more information on the various options.
Further help and advice is available from HMRC’s
website. If that doesn’t answer
your question, call the VAT Online Services Helpdesk on:- 0845 010
8500 (available between 8am and 6pm, Monday to Friday).
Did you know that:-
1. Newly-registered businesses, and those with turnovers of more
than £100,000, have had to file and pay their VAT online since 1
2. A summary of responses to a recent consultation on the changes,
entitled:- ‘VAT – consultation on the next steps for moving
VAT online – summary of responses’, is published on the HMRC
NW tutors and
coaches have less than 1 month to clean the slate on tax
WARNING to all Private
tutors and coaches as you have less than a month left to tell HM
Revenue & Customs (HMRC) about any tax you think you owe. HMRC have
said that:- "They were offered a special tax plan called 'The
Tax Catch Up Plan'; in October 2011. Registering by 6 January 2012
ensures that tutors and coaches don’t lose out on the best terms to
disclose and pay what is owed."
The Tax Catch Up Plan is for people providing tuition or coaching,
regardless of whether they have a registered qualification. It is
aimed at those who profit from tuition and coaching as a main or
secondary income, on which the correct tax has not been paid. The
opportunity is available to people teaching traditional academic
subjects, fitness and dance, musical instruments, art, life
coaching, personal training and other instruction.
After 6 January 2012, using information pulled together from
different sources, HMRC will investigate those who have chosen not
to come forward.
Marian Wilson, Head of HMRC Campaigns, said:- "Tutors and
coaches who have notified us of their intention to disclose unpaid
tax will have until 31 March to tell us what they owe and make
arrangements to pay. From January we will use the information at our
disposal to investigate tutors and coaches who have not declared
their full income. I therefore strongly urge anyone in this group
who thinks they may have outstanding income tax liabilities to get
in touch with HMRC and get their tax affairs in order. This is the
first step for those with undisclosed income or gains to avoid a
full tax investigation and much higher penalties. Contact us before
we contact you."
The Tax Catch Up Plan has 2 stages:-
► By 6 January 2012,
tutors/coaches/instructors must register with HMRC to “notify” that
they plan to make a voluntary tax disclosure.
► By 31 March 2012, those who have
registered to notify must tell HMRC what they owe and pay the tax,
interest and penalties due.
People can register online by completing a notification form via:-
by calling HMRC on:- 0845 601 8817. A dedicated team is ready to
help, Monday to Friday, from 08:00 until 19:30.