Franchises informed about changes in VAT
Over the years, one type of business which has grown tremendously in popularity is the franchise business. The latest news related to franchise business is that all those franchises that are VAT registered will receive a letter from HM Revenue & Customs regarding online filing. If you have not received the letter, you will receive it soon.
From the 1st of April 2010, franchisees and franchisors that have a net taxable turnover of more than £100,000 will have to file their VAT returns online. These franchisees and franchisors will have to pay their VAT electronically.
All franchise businesses that will register for VAT on April 1st, 2010 or after that day will have to pay VAT electronically. Stephen Banyard from HMRC stated that online return filings are very beneficial as it is safe and convenient. Moreover, arithmetical checks and calculations along with online acknowledgement will also be provided safely.
If you own a franchise and your turnover is more than £100,000, then register for VAT online services if you have not signed up already. Register now to ensure that you can pay your VAT online.