VAT registration helpline to close on Monday 22 May, giving agents and taxpayers only five days’ notice.
In order to register for VAT, taxpayers are advised by HMRC to use the “Where’s my reply” online service instead of the VAT registration helpline.
HMRC initially told agents that the service would end on 22 May 2024 in an email, but has now confirmed to UK-Accountant that it is actually ending on Monday, 22nd 2023.
Those submitting a query may have to wait up to 40 working days for a response as a result of this change.
VAT helpline trial
During last year’s post backlog, HMRC temporarily stopped some VAT phone lines for one day a week while catching up with the backlog.
As a result of this exercise, HMRC was able to clear more than 4,000 additional items per day on average.
As a result of feedback from stakeholders, HMRC has taken the decision to redeploy advisers from the VAT registration phone helpline to process VAT registration applications exclusively.
HMRC announced the closure of the helpline in an email titled “VAT registration – improving our service” by writing: “Our customer service offer is constantly reviewed to ensure that we prioritise our work in the best possible way to maximize our service offering for our most vulnerable customers. We recognize that we need to improve performance across our core service lines. We’re confident that this approach will help improve our customer service levels by allowing our colleagues to prioritise processing of these applications.”
According to HMRC, taxpayers can expect a response within 40 working days, and those who submit within that timeframe should not contact them.
Agents and taxpayers who have not received a response within this timeframe should email vrs.newregistrations@hmrc.gov.uk, and HMRC will respond within five working days.
Use online tools instead
HMRC justified the closure by claiming that over 85% of taxpayer calls to the helpline are for updates on their applications, but their “Where’s my reply” tool will help them find an estimated response date.
Currently, HMRC officers spend the majority of their time talking to customers about their submitted applications. This information can already be found online, so HMRC believe they should process those applications instead.
In the Simplifying and modernising HMRC’s income tax services through the tax administration framework policy paper, HMRC outlines its ambitions to be “digital by default”.
In order to reduce the cost of sending 70 million items by post each year, HMRC has set in motion a rapid transition to becoming digital by default. Submitting P11D forms electronically has already begun.
In order to manage capacity issues, HMRC has temporarily closed helplines, with the Agent Dedicated Line currently only accepting calls regarding late filing penalties and PAYE coding notices.
Accountants’ response
Accounting professionals have already expressed opposition to the closure of the VAT registration helpline.
In the past few weeks, UK-Accountants have contacted the helpline four times and have spent 40 minutes on hold each time.
There is little doubt that the response time will be extended and the process will take even longer than it already is.
To provide a more integrated service, HMRC should invest more in its people, technology, and systems, rather than simply closing these much-needed helplines and providing less and less support to taxpayers and their agents.
As a result, most businesses will be left in a no-man’s land of having to legally charge VAT during a period when they cannot legally charge VAT because they lack VAT numbers. Under the old system, registration used to be possible in 48 hours.
If HMRC had an online system where agents could receive automated updates or an email confirming a VAT number has been issued, we would not be required to contact them.
The story will be updated once we receive a response from HMRC.
Your may also be interested to read:
How to Get UK VAT Registration with Less Pain