HMRC is reminding VAT-registered businesses that all VAT returns must be submitted online from this spring, meaning paper returns will soon be a thing of the past.

Currently, only newly-registered businesses and those with turnovers of more than £100,000 have to submit their VAT online, as well as pay electronically. Anyone else can send a paper VAT return if they wish.

That is changing from April, when all 1.9 million VAT-registered businesses in the UK will have to submit their VAT returns online, and pay electronically, for accounting periods beginning on or after 1 April 2012. After April HMRC will stop sending out paper returns to those now required to submit online

Every VAT-registered trader not already required to submit online will receive a letter from HMRC this month advising them of the change, and what steps they need to take.

To submit VAT returns online, the taxpayer needs to be registered and enrolled for HMRC's VAT Online Service which can be done online at http://www.hmrc.gov.uk/online/new.htm

HMRC are keen to stress that online filing has a number of benefits, compared to paper filing:

• an automatic acknowledgement that your return has been received;
• a handy sum checker; and
• an email alert reminding taxpayers when their next online return is due.

More information is available at wipww.hmrc.gov.uk/vat/online-return-help.pdf