HMRC’s VAT helpline to close on 22nd May

HMRC have advised that their VAT registration helpline will close on Monday 22nd May. With only 5 days’ notice given, this is very unhelpful for those businesses that are chasing outstanding registrations. HMRC are quoting 40 business days for a new VAT registration, and they will not accept enquiries within that period. It’s only after the 40 days have expired that you can contact them by email, and they’ll respond within 5 days.

This means that you may have to charge VAT but can’t because the VAT number might not come for 2 months!  Our suggestion is:

• If you are selling to VAT-registered businesses: Invoice net of VAT with an advice notice that the VAT element will follow in due course. Once the VAT number has been allocated, a VAT-only invoice be issued to each customer covering the VAT on all invoices sent in the period between VAT registration date and receipt of the number;
• If you are selling to the public or non-VAT registered businesses the invoices should include the VAT charge, but not be specified. Eg. if the invoice should have been £100 plus VAT, it will be issued as £120, with no reference to the VAT element.

About the Author

Paul Newbold

Partner

After qualifying with KPMG where he gained significant audit experience, Paul joined Torgersens in 1991 and became the firm’s audit partner in 2000. Paul employs his broad range of financial skills to provide commercial and accounting advice to a range of owner-managed businesses in the independent retail, education and professional services sectors. He also has extensive experience dealing with charities, Registered Social Landlords and not-for-profit organisations and co-operatives.   Outside of work, Paul likes to visit Eastern France and South-West German and read novels by David Morrell, Michael Blake and Harper Lee. He also likes watching films, his favourite is The Shawshank Redemption.

To get in touch please e-mail paul.newbold@torgersens.com.