The latest Agent Update 98 has recently been published and sets out changes to the VAT Registration Service, which was covered in recent editions, with the switch over to the new system going live next week on Monday 1 August. Agents have actions to take in respect of any unsubmitted applications they may have in the existing system – these will be lost unless submitted by 5pm Sunday 31 July 2022. The main change to note is that there will be automatic enrolment in Making Tax Digital for VAT if a taxpayer has not already enrolled.
By way of background, HMRC has been developing a new VAT Registration Service (“VRS”) which aims to speed up the process and improve security. HMRC has been testing the service throughout the past 18 months and has now had over 37,000 successfully register their own business.
The next step is to switch on the new functionality for Agents, at which time HMRC will divert all new applications from the legacy service. One of the key changes is that every taxpayer will be automatically signed up to Making Tax Digital as part of registration, removing the need for that extra step.
This service will go live on 1 August 2022. HMRC recommends that incomplete, unsubmitted VAT applications are submitted by 31 July 2022 at 5pm. Any partially completed, saved applications on the old service will be lost after this time. Agents will however have the same functionality in the new service to save applications for up to four weeks before submitting them.