Important update from HMRC about VAT penalty point/penalty interest notices for agents and their clients

We have received the following update from HMRC about VAT penalty point/penalty interest notices for agents and their clients.  HMRC will also be publishing an update on the Agent Forum on Monday 27 March 2023.

HMRC is starting to issue VAT penalty notices to customers who file or pay their VAT late. If you have been authorised by your client to act on their behalf, you will receive exact copies of any notices that are issued to your clients.

Due to recent GDPR concerns raised by the agent community, HMRC has removed customer details (names and addresses) from the copies of letters sent to authorised agents.  This is to avoid the risk of customer’s details being visible through the envelope window.

If you receive one of these notices you can check which client the notice refers to by checking the VAT registration number (VRN) on the notice.  Using the VRN, you can also view your client’s position by accessing the Agent Services Account. [Sign in to your agent services account - GOV.UK (www.gov.uk)]

HMRC is working on a solution to resolve this issue and avoid any confusion in future communications to agents.