MHA | VAT registration delays - how to ensure applications are…

VAT registration delays - how to ensure applications are processed promptly

Carolyn O’Shea · January 24th 2022 · read

HMRC sign

HMRC have updated the VAT registration process, which will now require businesses to submit applications via the new VAT Registration Service (VRS).  HMRC will now automatically register businesses for MTD during the VAT registration process, thus removing the need for businesses to take this extra step themselves.

HMRC have stated that VAT registration numbers will be sent by post within 30 days of the application. However, if HMRC wish to conduct checks or request further information, the process could take up to 8 weeks, which can result in practical issues for businesses.

To process VAT registrations, HMRC will now require the following information for the director/sole proprietor/lead partner:

  • Name
  • Date of birth
  • National Insurance number
  • Self-Assessment UTR (for individuals and partnerships which have been supplied one)
  • Details of turnover and nature of business
  • Bank account details
  • Company Registration Number (limited companies only)
  • Corporation Tax Unique Taxpayer Reference (limited companies only)
  • Details of associated businesses including VAT registration (if applicable) and UTR

A business that has not been allocated a VAT registration number can be disadvantaged – it cannot issue VAT invoices to customers and often a VAT number is a proof of being in business. As such, it is important that the information listed above is given and accurate to try to reduce delays.

Below are some of the most common reasons that cause online VAT registration applications to require manual intervention and increase processing time.

Addresses do not match on the application

Addresses provided on the application do not match the business’s principal place of business.

Trade classification does not match

Notification of a trade classification does not match up with the work that the business itself carries out.

VAT liability is not identified

The VAT liability of trading is not correctly identified.

Invalid signatory

Invalid signatory for the application – e.g. for a corporate body it must be a director, company secretary or authorised signatory or an authorised agent.

Incorrect dates

Invalid dates on the application – e.g. does the effective date of registration requested match up to the circumstances that have been outlined for requesting registration elsewhere in the application?

Wrong bank account details

The bank account details provided are not in the name of the taxable person.

Missing Supplementary forms

Supplementary forms are missing, for example applications involving land and property require form VAT 5L and form VAT 1614A should be attached to notify an option to tax on land and buildings. 

Can MHA Moore & Smalley help me with my VAT registration?

MHA Moore and Smalley can advise and help you with ensuring the VAT registration process is as quick and seamless as possible. Get in touch today to find out more by contacting [email protected] or by filling in the form below.

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