Removal of VAT services from HMRC’s legacy Online Service for Agents
HMRC has contacted the CIOT and other JVCC stakeholders to notify about the upcoming removal of more VAT services from the ‘Online Service for Agents’ system. As the majority of agents use an Agents Services Account, this should mean that most agents are unaffected.
HMRC information:
On 16 April 2024 HMRC will remove some functionality from agents’ legacy VAT services. Agents will no longer be able to use the ‘Online Service for Agents’ to submit a VAT return, set up or amend a direct debit or change VAT registration details on behalf of your client. This does not impact services within the Agent Services Account (ASA). From 16 May 2024 the remainder of legacy VAT services will be withdrawn. These are; view account and view submitted returns.
Why this is happening?
HMRC are in the process of decommissioning their outdated legacy computer system. VAT registered customers were moved to a new IT platform when they introduced Making Tax Digital for VAT. Agents and a small number of customers still have access to the legacy VAT services. Amendments made in the legacy system do not automatically update customer records on the new platform. This can lead to a delay in updating records.
How this affects agents
Agents must use the ASA to transact on behalf of their VAT clients and should no longer use the legacy Online Service for Agents. Agents will be unable to create/amend Direct Debits on behalf of clients using the legacy Online Service for Agents. Clients will need to self-serve through their VAT Online Account; this ensures that banking regulations are adhered to. The VAT C9 form is available for use if more than one signature is required on a Direct Debit Instruction (DDI).
Please be aware that amendments agents make to client details via the Online Service for Agents until closure will not be automatically reflected in their clients’
records. This includes DDI amendments, which could result in delayed payment to
HMRC and prevent repayments reaching the client on time. Please refrain from
using this service to advise HMRC of any changes with immediate effect.
Agents should use their ASA to: advise HMRC of changes to client VAT accounts, view client accounts, view submitted returns, print a VAT certificate, cancel a VAT
registration, and print VAT returns on behalf of their client.
If agents are not yet authorised to represent their client via the ASA, they will need to complete a digital handshake.
How this affects clients
The majority of clients will be unaffected by this change, they will be automatically logged into the new IT service when they access their VAT online account via their
Business Tax Account.
The small number of clients who still have access to the legacy IT service will not be
able to submit a VAT return, set up or amend a direct debit or change VAT registration details. Clients affected will be directed to the new service by relevant guidance.
VAT returns should be made through MTD compatible software unless HMRC have granted an exemption.
Clients must have a Government Gateway user ID and password to access the latest VAT online account.