November 29, 2023

Making Tax Virtual (MTD) for VAT is a part of a much wider govt initiative to simplify the tax device.

In April 2022, the MTD for VAT scheme was once made necessary for all closing VAT-registered companies who weren’t maintained in 2019, that means they will have to all now use Making Tax Virtual-compatible instrument to stay virtual information and publish their VAT returns to HMRC.

As a part of this, VAT registrations have additionally modified.

On 1 August 2022, the brand new VAT Registration Provider (VRS) was once rolled out, and this new procedure guarantees each and every trade is mechanically signed as much as Making Tax Virtual once they sign up for VAT, taking out the will so that you can take that additional step.

If you happen to’ve encountered problems when registering companies for VAT as an agent or are not sure of the present necessities for Making Tax Virtual for VAT, we’ve were given all of the newest data you want to be sure to and your purchasers keep up-to-the-minute.

Right here’s what we quilt on this article:

Closure of the Making Tax Virtual for VAT sign-up adventure

You could have already registered quite a few purchasers for Making Tax Virtual for VAT during the on-line sign-up procedure, however any longer it gained’t be to be had.

A variety of companies have now signed as much as MTD for VAT, and HMRC has signed up all closing companies mechanically, until they’re exempt or have carried out for an exemption.

So that you’ll not want to join your purchasers.

If you want to use for an exemption from MTD for VAT for any purchasers for whom it’s no longer affordable or sensible to make use of a pc or the web, you want to apply the exemption software procedure.

HMRC will believe every software on a person foundation and programs are being processed as briefly as conceivable.

Closure of the VAT portal

The HMRC on-line VAT portal was once closed on 1 November 2022.

This was once performed to verify all non-exempted VAT-registered companies apply the brand new Making Tax Virtual procedure and will not report their tax returns on-line by the use of their on-line VAT portal which is successfully the ‘pre-MTD’ direction.

Those companies must have already switched to Making Tax Virtual well matched instrument to be able to report their per 30 days or quarterly VAT returns.

Alternatively, the net VAT go back portal does stay to be had for companies who filed for his or her virtual exclusion exemption earlier than the portal closure date.

What’s the new VAT Registration Provider for brokers?

One of the crucial key adjustments made by way of the VAT Registration Provider is to mechanically sign up new companies for MTD for VAT.

Letters from HMRC about your consumer’s software standing, together with their VAT Registration Quantity, will probably be issued on your cope with in addition to the customer’s fundamental office as supplied within the software.

As an agent registering on behalf of purchasers below the VRS, you’ll want both an Agent Products and services Account (ASA) ID and password, or your HMRC On-line Products and services account ID and password.

HMRC has instructed the fastest and most simple approach to sign up a consumer for VAT is to make use of an Agent Products and services Account and to apply those steps to sign up for VAT on-line.

You’ll want to supply your title, telephone quantity and electronic mail cope with. If making a decision to make use of your previous HMRC On-line Products and services account main points, you’ll be requested for additional info to ensure your id.

Up to now in this adventure, some accountants have encountered demanding situations with the brand new VAT Registration Provider.

The primary problems are relating to delays, with quite a few accountants ready between two and 3 months for an software to be processed.

Many of us have complained about receiving unhelpful standing replace letters and no longer having the ability to touch the helpline.

To provide you with a sign of procedure occasions, on 25 October 2022, the ICAEW Tax School reported VAT registration programs have been typically taking round 40 operating days to procedure.

If you want to apply up an software you’ll be able to touch HMRC after 40 operating days have elapsed by way of sending an electronic mail or by way of calling 0300 322 7870.

HMRC has already made some updates to the carrier in response to the comments it has won to this point and there are extra enhancements within the pipeline.

For instance, for those who’re looking forward to data out of your consumer, you’ll be able to now save an software shape in draft for 28 days; this was once greater from seven days.

A job checklist view has additionally been presented to permit an agent to edit the solution of a specific query with out clicking thru all of the shape.

And a virtual add characteristic has been added to allow supporting paperwork to be hooked up to the registration.

Ultimate ideas on the place we’re with Making Tax Virtual for VAT

All VAT-registered companies have now been signed as much as MTD for VAT both during the previous sign-up procedure or mechanically by the use of VRS, which means that each and every trade must now be the usage of MTD-compatible instrument to stay virtual information and publish VAT returns.

The new closure of the net VAT portal was once the general step in transferring all non-exempted companies over to the brand new virtual VAT go back procedure.

HMRC is now operating thru all closing teething issues created by way of the brand new VAT Registration Provider to verify speedy and environment friendly VAT registration going ahead.