Spring changes for VAT and PAYE

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.

The changes for VAT-registered traders with annual turnovers of GBP 100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically. Also, all businesses registering for VAT from April will have to file their returns online and pay electronically.

HMRC is also set to penalise businesses that charge VAT when they are not entitled to claim it.

From May, two key PAYE changes come into effect, which employers need to be aware of. 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.

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.