VAT Registration delay. Help needed

VAT Registration delay. Help needed

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A new client tried to register for VAT 8 months ago and still no registration number. They have rung up numerous times and get nowhere - just that there are delays in processing. But 8 months is ridiculous.

Does anyone have a number of a senior bod or complaint bod to talk to to hurry this registration along. No point in talking to the minions on the advice desk as you get the same answer.

Thanks
michele sutcliffe

Replies (12)

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By frauke
04th Jul 2007 10:05

VAT registration time?
Last night I submitted VAT registration forms using the HMRC website for new company.

I used my accountancy firms login (we are not VAT registered). I'll let you know how long it takes.

Perhaps you should consider register them using this system. Perhaps the forms have got lost?

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By shaunmcguinness
04th Jul 2007 14:11

write to your MP
I would suggest you or your client write to their MP.
When I worked for the Inland Revenue (many years ago) if a letter came in from an MP asking to know what had happened it jumped straight to the front of the queue. Evene though we generally had at least 6 weeks of post in front of us at any one time.
It does get results!

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By sheppitsgal
04th Jul 2007 14:07

No difference with online
I have just spoken to our local VRU (Grimsby) to get the status for a client registration. I asked if it would be any quicker done online and was told that they all go into the same "pile" and dealt with as received on a certain day.

Grimsby are currently processing a couple of months behind, which is bad enough!

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By User deleted
04th Jul 2007 17:11

thanks
I think the original application was done online, so that way definately isn't any quicker. One of the problems seems to be that neither Newry or London want to admit that they are the ones that should be dealing with it and just pass the buck.

I think the MP letter writing way will be the best. Can't make matters any worse. As this application was voluntary and they haven't reached the turnover limits yet I am pondering on getting them to cancel it and start again when their turnover does reach the registration limit.

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By neileg
04th Jul 2007 15:06

Steve Browning
You said: The VAT Practitioners Group makes repeated representations to HMR&C as do other members of the Joint VAT Consultative Committee but the response is usually that the registration units are the first line of defence against carousel fraud and so this is acceptable collateral damage.
I don't see how this is a valid argument. It is the fraudulent repayment that causes the problem, not the registration. Th opportunity to defraud HMRC while still being a net VAT payer is vastly reduced. Surely the efforts should go towards vetting repayment returns of material amounts?

I realise you are the messenger, and I'm not having a go at you!

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By User deleted
03rd Jul 2007 13:39

Have you tried doing it online?
Have you tried doing it online. We have done it for a number of clients and all have come through reasonably quickly. Although I haven't done any recently (last one 4 months ago)

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By NeilW
03rd Jul 2007 15:01

It's a political issue
I'm afraid the best thing you can do is to write to your MP, and get your clients to write to their MP - particularly if the business is in trouble because of the delays.

The pain needs to be understood by those who have implemented the policy without sufficient minions to do the work.

NeilW

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Euan's picture
By Euan MacLennan
05th Jul 2007 13:04

Reorganisation of VAT registration
In the past, it was the Wolverhampton VAT office which dealt with our paper VAT1 applications and that continued when we switched to online applications. However, we recently applied online and followed up with a paper VAT68 (there is no online facility for this) to Wolverhampton. Eventually, we received a letter from the Grimsby VAT office asking us to send them a VAT68. When we queried this by telephone, we were told that the registration function was being reorganised so that Wolverhampton handled all applications for new VAT registration numbers and Grimsby dealt with applications involving the transfer of an existing VAT registration number. The reorganisation evidently did not extend to transferring our original VAT68 from Wolverhampton to Grimsby.

Perhaps, a similar reorganisation has been imposed on Newry VAT office where the responsibility, but not the paperwork, has been transferred elsewhere.

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By ianscottfcca
06th Jul 2007 16:26

no help really - just another in the same boat!
We've taken on a client who applied for VAT registration 5 1/2 mths ago. In the past two months we've exhausted HMRC's complaints process, registered with and joined the Adjudicator's Office complaints list and finally made a complaint to the Parliamentary Ombudsman - via the local MP - and we're still waiting for a VAT number!

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By andrewparker1
07th Jul 2007 14:21

Action needed?
Been waiting over 12 weeks for 2 seperate registrations from the Newry Office. Called to try and ascertain if there are any problems only to find that hours of business for callers are between 10 a.m. and 3 p.m., there is no telephone queuing service and if you are lucky enough not to get the engaged tone you are told by an automated message to call back later. Have spent several hours on the telephone getting nowhere - I cannot even advise my clients on whether their applications have been received.

Funnily enough I called the National Advice line to ask if there is anything further I could do - the officer told me that he had been trying to get in touch with Newry all day as well!

This is a severe hindrance to business in many respects (for example one of my client's is expecting a substantial refund on the acquisition of a property and has borrowed to fund the input VAT). I would be interested to learn whether the cases mentioned in this article so far are isolated or just the tip of the iceberg. If there is fundamental problem then perhaps our collective professional bodies should be speaking with HMRC on our behalf.


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By astjprice
08th Jul 2007 20:09

Reported to the ICAEW
I am a member of the VAT committee of the Institute of Chartered Accountants in England and Wales. We have a meeting on 12 July. I have copied the question and the 12 answers to the secretary and asked for it to be added to the agenda.

Sadly, it is my repeated current experience that it is very difficult to get the senior management of HMRC to take any action in order to put things right. Other people will say that they have seen promises made but my experience is that it is merely talk about principles as opposed to the action, which a management of an organisation must take if it is to change anything.

However, we have to keep trying!

A St John Price FCA

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By User deleted
12th Jul 2007 14:11

It gets worse!
Having obtained more details from my client it appears they have rung up twice a month since January for a November registration. At end of Jan were told another 12 weeks. Obviously this not come to fruition. Newry told them that London dealing with it but London a law unto themselves and won't give any info. to either client, agent or Newry. What on earth is going on?
Client now going to write to Hammersmith MP who enjoys needling government. We'll see if this gets the ball rolling.
Its not as though this company is dealing in large amounts of money plus it was only registered in October last year so how difficult the checks can be makes you wonder.
John - hopefully you and your team can get something done for the future.

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