The following VAT changes came into effect on 1 April:

· VAT-registered traders with annual turnovers of £100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically;

· All businesses registering for VAT from April will have to file their returns online and pay electronically;

· All VAT cheque payments sent by post will be treated as being received by HMRC on the date when cleared funds reach HMRC’s bank account – not the date when it receives the cheque.  However, this change does not affect any cheque payments made by Bank Giro;

· Anyone issuing an invoice that includes VAT, when they are not entitled to charge it, will be subject to a new VAT wrongdoing penalty. The penalty charged will be a percentage of the amount charged as VAT on an unauthorised invoice.

Two key PAYE changes come into effect in May:

· All employers must file their Employer Annual Return (P35 and P14s) online by the 19 May – there is no longer a paper filing option.

· There will be penalties for not paying PAYE, NI contributions, Construction Industry Scheme (CIS) deductions and student loan deductions on time, and in full.

 To file your VAT or PAYE online, you must first register with HMRC’s online services by visiting www.online.hmrc.gov.uk, clicking “Register” under the “New user” section and then following the instructions.

Further information is available on the HMRC website:  www.hmrc.gov.uk