According to HMRC’s website
it is currently taking an average of 38 days
to process new VAT registration applications.
The reason given for the delay is that HMRC
have to carry out anti fraud checks in some
cases and this leads to significant delays.
The additional checks are being carried out
in response to ‘carousel’ or ‘Missing
Trader’ fraud. You may remember that
we have previously written about this type
of fraud in enews. The fraud occurs through
contrived transaction chains involving supplies
of high value goods. The tax loss occurs when
the VAT charged by the supplier is not paid
to HMRC but can be reclaimed by the recipient.
The current VAT registration threshold is
turnover of £64,000. If your business
is approaching this annual threshold or is
likely to make supplies of £64,000 in
the next month please do get in touch.
Internet Link:
HMRC advice on registration
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