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Don’t be caught out on VAT from Valentine’s Day, warns Newby Castleman

Companies which rely on older software to manage their finances are being reminded by local accountants Newby Castleman that changes to HMRC’s systems due on February 14th may delay them filing their VAT returns.

HMRC’s current electronic VAT return submission platform, known as the Electronic Data Interchange (EDI), will be decommissioned on Wednesday 14th February and replaced with a new platform that will not be compatible with some older software.

Firms that use the popular Sage software, for example, will no longer be able to file their VAT returns electronically unless they are using the latest version of the programme, and this may lead to delays in payment and potential penalties.

Brent Goodwin, VAT Manager for Newby Castleman, said, “These imminent changes to HMRC’s VAT interface may impact businesses that rely on out-of-date systems to file their returns. We would urge companies to check their accountancy software and compatibility with the new VAT platform as soon as possible - before it comes into effect this Valentine’s Day.

“Firms which can no longer file their VAT returns in this way will need to access HMRC’s website and input their data manually, and any security measures in place may slow the process further. Late VAT payments can lead to a written warning from HMRC and in persistent cases can incur financial penalties.”

Newby Castleman is one of the Midlands’ leading independent accountancy firms, with offices in Leicester and Loughborough. It offers a range of specialist financial services, business and tax advice for individuals and businesses. For further information, telephone the Leicester branch on 0116 254 9262, the Loughborough branch on 01509 263500 or visit the website at www.newbycastleman.co.uk.


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