HMRC issue tips on how to complete the VAT registration application form more effectively
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Andrew Needham, Director of VAT Solutions (UK) Ltd, highlights some useful
HMRC guidance for businesses and their advisers when registering for VAT.
At the beginning of December 2007, HMRC posted the following guidance on its
website in relation to the completion of VAT1 registration forms. Presumably,
the tips are intended to work in tandem with HMRC’s ongoing drive to reduce the
length of the much-publicised delays in the registration process.
Box 1 - status
Partnership: You will need to enclose VAT2 form with details (including the
National Insurance number) and signature of each partner.
Limited Company: You must provide the company number and incorporation date.
The date you are applying to be registered from must be after the incorporation
Box 5 - Business address/telephone number
This should be the address in the UK where the day to day running of the
business is carried out. Other address - such as 'care/of', PO Box, an
accountant’s address, or a non-UK address or telephone will be queried and this
may delay your application.
Box 6 - Business activity
Please provide a full description of the business activity - for example
'wholesaler of fruit and vegetables' or 'management consultancy services'. Less
clear descriptions such as ’wholesaler’ or ‘consultancy’ will be queried.
Box 7 - Associated companies
This must be completed if any of the partners or directors are currently, or
have been in the last two years, involved in any other business. Full name(s)
and VAT number(s) of those business(es) are required.
Box 8 - Bank account
If your bank account is still being set up, you should provide any evidence
you have to support this - for example a copy of the application form or other
correspondence with your bank. Please do not enter duplicate bank information of
Boxes 9 - 12 - Transfer of a Going Concern
If you are taking over (or about to take over) a business as a going concern
you must complete boxes 9-12. To use the previous owner’s VAT Registration
Number also complete and send Form VAT68 (taking over a previous owner’s VAT
Registration number may not be sensible for your business so ensure you
understand the implications and/or take advice on this before deciding).
Box 13 - Registering on a voluntary basis (i.e. relevant turnover is below
Please tick the appropriate box and specify the date you want to be
registered from in box 13 only - do not complete boxes 14 or 15.
Boxes 14 and 15 - Compulsory registration (i.e. relevant turnover above
You will need to complete either question 14 or 15. Please identify which
question applies (check with the guidance notes) and answer that question only.
Box 19 - Estimated turnover of taxable supplies
This box must be completed - please use your best judgment to make an
estimate. Leaving the box blank will cause queries and delays.
Boxes 20 – 21 Exempt and EU supplies
You must tick either the 'yes' or the 'no' boxes for these questions - and
provide the estimated amounts if you answer 'yes' to the EU questions. The
guidance notes (with the VAT 1 form) will help you identify exempt supplies.
Boxes 22 and 23 - Details and declaration
These boxes must be completed by the appropriate person. The necessary
details (name, address etc) of the person must be given. The signatory must say
in what capacity they are signing - for example as sole proprietor or as
director or as a partner. Leaving boxes blank will cause queries and delays.
About the Author
Andrew Needham is a Director of VAT Specialists Limited,
headed by Chartered Tax Adviser Andrew Needham who has a degree in Law from UCNW
Bangor and is a specialist in indirect taxes. Andrew has over 20 years
experience in VAT having spent 7 years in HM Customs & Excise, firstly as a VAT
inspector, then as a departmental trainer, and finally in a headquarters policy
unit dealing with the introduction of the EU single market.
VAT Specialists Limited, 31 Bisham Park, Runcorn, Cheshire WA7 1XH - T)01928
571207 F) 01928 571202 Mob ) 07810 433 926
(E) Andrew Needham BA CTA
(T) 01928 571207
(F) 01928 571202
(M) 07810 433 926
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Article Published/Sorted/Amended on Scopulus 2008-03-19 13:15:07 in Tax Articles