ICAEW.com works better with JavaScript enabled.


VAT grouping: treat as provisionally accepted, says HMRC


Published: 09 Mar 2022 Update History

HMRC has amended its guidance on how businesses should file their VAT returns while awaiting a decision on a VAT grouping application.

In Revenue & Customs Brief 5 (2022), HMRC says that businesses waiting for a response to their VAT grouping application should:

  • treat the application as provisionally accepted on the date it was submitted online or the date it should be received by HMRC if submitted by post; and
  • account for VAT accordingly.

While waiting to receive a VAT grouping registration number, a business may receive:

  • an automated assessment letter;
  • letters asking for payment of any automated assessments; and
  • notification of a default surcharge because the business has not filed its tax return.

The business does not need to take any action in response to any of these notices. HMRC will automatically cancel them once the group application is fully processed.

HMRC will not take recovery action for any debts listed above that come about because a business follows this guidance. Other VAT debts may still be subject to recovery actions.

Any business that followed the interim guidance, provided by HMRC on 24 November 2021, to submit VAT returns using previous registration numbers, does not need to take any steps to change this.

In all instances, unless the application is refused, the date the group becomes registered will be the date that HMRC received the application, or another agreed date. HMRC has confirmed that a business will not be penalised as a result of actions taken in response to previous versions of this guidance.

Read more:

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

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

Practical guidance

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

Technical support
Tax Faculty image

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