New VAT Registration process for agents

A new VAT registration process known as the VAT Registration Service or VRS was made available to agents from 1 August 2022. The VRS had been in testing mode for the previous 18 months and was used by over 37,000 businesses to successfully register for VAT.

One of the key changes with using the VRS is that every new VAT registered business is automatically signed up to Making Tax Digital (MTD) as part of registration, removing the need for that extra step.

To access the VRS service, agents should use the link available at How to register your client for a tax service as an agent. Agents must ensure they use their agent services account credentials in order to login.

The person completing the application will be asked for their name, phone number and email address. HMRC has clarified that the details are requested solely for the purposes of any follow up questions on the VAT application.

HMRC has also sent an update newsletter to stakeholders on the new VRS. The update answers some FAQ’s including:

What information do I need from my clients to register their business using the VRS?

To complete a VAT registration, you’ll need your client’s:

• name
• date of birth
• National Insurance number
• ID, such as their passport or driving licence
• details of turnover and nature of business
• bank account details (or a reason if no bank account details are provided)
• Unique Tax Reference (UTR) number

If you’re registering a limited company client, they must have a have a Company Registration Number and a Corporation Tax Unique Taxpayer Reference (UTR) to complete the VAT registration process. Individuals and Partnerships do not need to have a Self-Assessment UTR to register for VAT, but if they do have one, they must supply it.

We recommend you have this information to hand when starting an application. If you are waiting for information from your client, you can save and edit the application for 7 days by clicking ‘Save and Exit’. This will soon be increased to 28 days.