VAT Online for Agents - introduction
Using HM Revenue & Customs (HMRC) Online Services can save you - and your clients - time and money. You can carry out many tasks online including: submitting VAT Returns, forms and declarations; making payments.
Using online services means that you can be sure that the transaction has been received by HMRC: you will get an acknowledgement of safe receipt from HMRC every time you file your return. Also repayments and refunds for your clients can be processed more quickly.
From 1 April 2010 your clients must submit their VAT Returns online and pay VAT electronically if either of the following applies:
- your client has an annual turnover of £100,000 or more (exclusive of VAT)
- your client is newly registered for VAT, regardless of turnover ('newly registered' means your client registered for VAT - or should have registered - on or after 1 April 2010)
If your clients fall into either of the groups mentioned above, they must continue to submit their VAT Returns online, even if their turnover drops below £100,000 in the future.
From 1 April 2012, all remaining VAT-registered businesses - those whose Effective Date of Registration (EDR) for VAT is before 1 April 2010 with a VAT-exclusive turnover of less than £100,000 - will also have to submit their VAT Returns online and pay any VAT due electronically.
To submit VAT Returns for your clients, you must be authorised by them to act on their behalf. But your client remains legally responsible for the declaration and payment of any VAT.
Once you're set up, you can:
- receive an email reminder to let you know when your client's VAT Return is due
- submit your client's VAT Return including VAT193 Return (final VAT Return) online
- apply for VAT registration on behalf of your clients
- view any VAT Returns submitted online on or after 23 November 2009. The online return details will be stored for a period of 15 months after submission
- set up and manage your client authorisations online
From 23 November 2009, even if you're an agent who isn't registered for VAT, you can register and enrol to use the VAT Online service. To do so, you'll need to request a VAT agent reference number online, we'll explain how to do this later on.
The demonstrator will show you how to register and enrol to use the VAT for Agents online service if you're an agent and:
- you haven't registered your business for VAT - you can obtain a VAT agent reference number to use instead of the VAT known facts
- you have registered your own business for VAT - you can enrol for VAT on behalf of your clients using known facts