ICAEW.com works better with JavaScript enabled.

TAX NEWS

HMRC to extend new VAT registration services

Article

Published: 01 Dec 2021 Update History

HMRC is extending its new VAT registration service for companies to all traders by the end of the year and to agents in early 2022. ICAEW’s Tax Faculty explains what it knows at this stage.

As part of the Making Tax Digital (MTD) VAT project, HMRC has almost completed moving all VAT records from its old database (VMF) to a new platform (ETMP). Once this has been completed, agents will access all VAT services through their agent services account (ASA) rather than the old agent online services portal. With MTD VAT becoming mandatory for all traders from April 2022 (unless they qualify for the digital exclusion exemption), HMRC will remove references to MTD from the VAT content in the ASA, instead of simply labelling it as VAT.

HMRC has developed a new VAT registration service that has been live for UK companies handling their own registration since November 2020. HMRC is now testing the new service with sole traders and other entities. By the end of 2021, it expects to extend the new service to all traders needing to register for VAT.

HMRC will then work to extend the new service to agents. HMRC’s current plan is for agents to start using the new service in early 2022. Further details will be provided nearer the time. In the meantime, agents should continue to use the existing VAT registration service.

ICAEW members have reported that when they apply to register a client for VAT, the client receives an email from HMRC (noreply@vatreg.hmrc.gov.uk) along the following lines:

Subject: Transaction with HMRC reference XXXXXXXXXXXXXXX
Re transaction XXXXXXXXXXXXXXX in respect of VAT, please log on to the HMRC portal and access the communications area to check new information about this transaction. Use the same user id and password as you used to create the transaction.

This is causing confusion as the application was made by the agent rather than the client and the client may not even have a user ID. The Tax Faculty has raised this with HMRC. HMRC has confirmed that this confusing messaging will be resolved as part of the roll out of the new VAT registration service to agents. The VAT registration number is still sent to the client in a letter.

ICAEW Know-How from the Tax Faculty

This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image
TAXwire

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly enewsletter

Practical guidance
Cover
TAXline

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image
Webinars

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.