I registered a client for VAT with HMRC online services effective 1st April. The service was efficient and the certificate of registration was issued on 5th April.
I have received the client's information for the first VAT return to 30th June but have now looked at the certificate and see that the first return period was set by HMRC to 31st May. Doh!
The stagger group has now been changed so that it is correct and it isn't the end of the world that the May 2011 return will be submitted late. However I wonder on what basis HMRC allocate stagger groups? Why didn't they give the first return for a three month period? Why don't they let the business request a stagger group on the VAT1?
Thanks
Tim
Replies (3)
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balancing it out
Stagger groups are issued (or at least used to be a few years ago) in such a way as to try to balance the workload, so if there are fewer people on May, Aug, Nov, Feb then the next registration will get that one so people get anywhere from a month to a 5 month first period.
I assume they don't offer the choice in the hope that most people will just accept what they're given and feel that if they offered the choice then the return system would likely be weighted to March year ends and become difficult to manage (because it goes so well at the moment!)
As I recall when such things as pen and ink were used you used to be able to request a specific stagger when you put in the VAT 1, but HMRC never made a big thing of advertising the fact.
VAT484
Form VAT484 can be downloaded and completed to change the VAT stagger date.
So far as I can make out there appears to be an element of randomness with the allocation of VAT return quarterly stagger dates. The concept of balancing out work within HMRC for handling VAT returns had more validity in the days of filing VAT returns by post with all the envelope opening, cheque banking and manual data input involved. Presumably nowadays its more a matter of balancing out computer workload to capacity, perhaps aided by the extra 7 days added to file on line.
I have received a recent p/e 30th June first VAT return case (despite the relatively high load of calendar quarter VAT filings).
I received a recent registration
and the first "quarter" was for a month. Another client's was a five month period. So it would seem it is random, although a choice on the VAT application would be helpful.