Tuesday 4 August 2009

Tips for Quick VAT Registration

It currently takes around a month for HM Revenue & Customs (HMRC) to process applications for VAT registration, although it can take up to six months if they need to carry out additional checks.

The VAT office aims to issue a VAT number to 70% of businesses within 13 working days of receiving the application for VAT registration. However, the remaining 30% of businesses may suffer delays, which can endanger the viability of the business.

There are a number of reasons why you would want to, or need to, register for VAT quite quickly. Once your turnover for the last 12 months exceeds £68,000 you must register for VAT within 30 days. If you start a new business, incorporate your current business or buy an existing business you may also need to register for VAT immediately.

To register for VAT you need to fill in one or more forms and submit them to HM Revenue & Customs (HMRC) for approval. You will then receive a VAT registration number and certificate.

Most applications for VAT registration can be completed online. All other VAT registration forms are available to download from the HMRC website and can then be printed, completed by hand and submitted by post.

If you need to register quickly for VAT follow these tips to speed up the process:

Apply for VAT registration online

Most applications for VAT registration can be completed online. All other VAT registration forms are available to download from the HMRC website, and can then be printed, completed by hand and submitted by post.


Advantages of registering online for VAT

Compared to downloading and printing a form, filling it in by hand and posting it, applying for VAT registration online is:
  • more secure
  • quicker - the form takes less time to fill in and there are no postal delays
  • easier due to the on-screen help that guides you through the process
  • certain because you get immediate on-screen acknowledgment that HMRC has received your application


How to apply for basic VAT registration

If you need to register for UK VAT, you should use form VAT 1 to apply for registration. You can complete this form online, or you can download the form, print it and send it back by post.

If you send your registration form by post, send it to:

HM Revenue & Customs
Deansgate
62-70 Tettenhall Road
Wolverhampton
WV1 4TZ

Partnerships

If you are registering a partnership, you will also have to complete form VAT 2 to tell HMRC who the partners are. This is not currently available to complete online



Applying for VAT registration on paper

  • - Use the correct forms:
    VAT 1 for basic registration. This was revised about a year ago so make sure you use a new version by downloading it from HMRC website.

    Vat 2 for giving partners. particulars
  • - Include the bank account number for the business registering for VAT. Do not include a bank account number for a different business. No bank account will probably delay the registration.
  • - Show a contact telephone number for the business. Although it is not a legal requirement to have a telephone number, the VAT registration will be delayed if you don't include one.
  • - If the business is a company you must include the date of incorporation and the company number.
  • - The business address must be a UK address where the business will be carried on. A 'care of' or PO box address is not acceptable.
  • - The business activity description must be clear and not generalised. Consultancy businesses need to state their area of expertise, such as 'business management' or 'information systems'.
  • - You must include an estimate of the annual turnover. This gives the VAT office an idea of the risk profile of the business.
  • - If any of the business owners have been involved in any other businesses in the last two years the full names of those businesses, including VAT numbers, must be given.
  • - If you are registering for VAT on a voluntary basis complete box 13 and specify the date you require to be VAT registered from.
  • - The VAT 1 form must be signed by an appropriate person, such as partner or director. Remember to state in what capacity that person is signing.

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