New VAT Registration Service launched by HMRC

HM Revenue & Customs (HMRC) has launched the VAT Registration Service (VRS), which is aimed to speed up the process, improve security, and automatically register businesses for Making Tax Digital (MTD).

From 1 August onwards, the existing system of registration has closed.

Users automatically registered

A notable change in the new system is that every taxpayer will be automatically registered for MTD, eliminating the need for that additional step.

All VAT-registered businesses are obliged to follow the MTD regulations by maintaining digital records and employing software to submit their VAT returns.

System tested for 18 months

The VRS has been tested by HMRC throughout the past 18 months, with more than 37,000 businesses enrolling themselves on the system.

Following this, the next step is to turn on the new functionality for agents, at which time HMRC will redirect all new applications from the legacy service.

What happened to unfinished VAT applications?

For agents with incomplete, unsubmitted VAT applications for customers, HMRC says they should have been submitted by 31 July 2022. Partly finished, saved applications on the old service cannot now be retrieved.

The new service saves applications for up to four weeks.

Making Tax Digital for VAT — make sure your clients are signed up

From 1 April this year, all VAT-registered businesses should now be using MTD to keep digital records and submit tax returns to HMRC.

MTD is designed to help businesses eliminate common errors and save time managing their tax affairs.

Even if they currently keep digital records, they must use MTD-compatible software to file their VAT returns. You can see a list of software compatible with Making Tax Digital for VAT, including free and low-cost options, to choose the software that is right for them.

Need advice on the VAT Registration Service? Contact our team today.

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