VAT registration – list of common reasons why online applications are delayed

The CIOT has been receiving member feedback in respect of HMRC administrative delays, which it raises in its HMRC engagement forums. To assist applicants with avoiding common errors found in online VAT registration applications, the Joint VAT Consultative Committee has issued a list of the most common reasons that cause online VAT registration applications to require manual intervention and hence increased processing time. Whenever it is possible to use the online VAT Registration service it is generally quicker than applying by paper, and can be considerably quicker if the application can be fully processed straightaway (i.e. without the need for manual intervention).

Online VAT registration application common errors that cause delays:

• Addresses provided on the application do not match the business’s principal place of business
• Notification of a trade classification does not match up with the work that the business itself carries out
• The VAT liability of trading is not correctly identified
• 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
• 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?
• The bank account details provided are not in the name of the taxable person

HMRC encourages agents and taxpayers to check that all information requested at https://www.gov.uk/guidance/register-for-vat#what-happens-next is included with their application to avoid any further delays. Applications from agents and taxpayers are all subject to the same checks.