Tag Archives: VAT-divisional-registration

VAT Registration: Extension of time limit

By   10 June 2024
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HMRC has extended the time limit for taxpayers to receive a reply after applying for VAT registration.

The previous 30-day response deadline is now 40-days.

The 40-day limit change also applies to apply to VAT registration notices for cancelling registration and group/divisional registration. The previous time limit for thee was 15-days.
Notices (VAT Notice 700/11) – Cancelling your VAT registration and (VAT Notice 700/2) – Group and divisional registration have been updated.

VAT grouping and divisional registration guidance updated

By   9 February 2024
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HMRC has update VAT Notice 700/2: Group and divisional registration.

VAT group registration

VAT grouping is a facilitation measure by which two or more eligible persons can be treated as a single taxable person for VAT purposes. Eligible persons are bodies corporate, individuals, partnerships and Scottish partnerships, provided that certain conditions are satisfied. Bodies corporate includes companies of all types and limited liability partnerships.

The pros and cons of VAT grouping here. 

Divisional registration

This is a facility that allows a corporate body which carries on its business through a number of self-accounting units to register each of those units or divisions separately for VAT. Guidance on divisional registration is in section 9.

Updates

Recent updates include:

  • Information on what happens if HMRC refuses your application and how to request a paper VAT1 form 
  • The list of notifications a business may receive while waiting for a VAT grouping registration number, has been updated at section 2.17. A new section about late payment submission penalties has been added at section 5.11.