HMRC has set out the top five reasons for delays in agent submitted VAT registrations and updated guidance has also been published which clarifies that agents must use their Agent Services credentials, and not HMRC online services credentials, when registering a client for VAT. This means the agent will not be required to verify their own identity. The list of information required to register a client for VAT has also been updated and HMRC has confirmed the process for obtaining agent authorisation for the income record viewer.
Top five reasons for delays in VAT registrations
HMRC set out the below tips in a recent Representative Body Steering Group meeting:-
- Business verification failed or not completed – ensure you have all the client’s details to hand when completing the application, include their SA/CT details;
- Same address used for the business and either the applicant’s home address or the agent’s address – ensure the correct addresses are entered in the correct part of the form. If your client genuinely works from home, that’s fine but if they have a separate business address, declare it;
- Bank details provided for VAT repayments don’t appear to relate to the business – bank details for VAT repayments must be a UK bank account, in the name of the business, one of the partners or the sole trader. If the name does not match, this can be fixed after registration once fixed with the bank;
- ID evidence required and applicant has chosen by post rather than attach – use the digital attachments option wherever possible. Whilst this won’t stop the need for a caseworker to look at the application, it makes it quicker and easier for them to make their decision; and
- Applicant’s details need further verification – like 1. above, make sure you have the required information ready to go. Use the “what you’ll need list” on GOV.UK to ensure you have everything.
Income record viewer agent authorisation
In order to obtain agent authorisation, agents are required to first generate a link from their agent services account which should then be emailed to their client who must then complete the digital handshake. Clients are required to do so using their Government Gateway credentials.
It has now been confirmed that the agent authorisation link for the income record viewer service is agent specific, not client specific. This therefore means that once an agent obtains a link for the first time, this simplifies the process for obtaining authority from multiple clients as the link can be copied and pasted into an email and then sent to multiple clients for them to individually complete the digital handshake.