August 2007

Delays In VAT Registration

According to HMRC’s website it is currently taking an average of 38 days to process new VAT registration applications. The reason given for the delay is that HMRC have to carry out anti fraud checks in some cases and this leads to significant delays.

The additional checks are being carried out in response to ‘carousel’ or ‘Missing Trader’ fraud. You may remember that we have previously written about this type of fraud in enews. The fraud occurs through contrived transaction chains involving supplies of high value goods. The tax loss occurs when the VAT charged by the supplier is not paid to HMRC but can be reclaimed by the recipient.

The current VAT registration threshold is turnover of £64,000. If your business is approaching this annual threshold or is likely to make supplies of £64,000 in the next month please do get in touch.

Internet Link:

HMRC advice on registration