VAT grouping delays - updated HMRC guidance

HMRC has published updated guidance on what businesses should do if they are waiting for a VAT grouping application to be processed.

We are aware of continuing delays in HMRC's processing of VAT grouping applications.   In response to concerns raised by the ATT and other professional bodies, HMRC have now published Revenue & Customs Brief 5/22 setting out what businesses should do whilst they are waiting for their application to be processed.

This brief is a welcome improvement on previous interim guidance, which did not appear to be in line with the relevant legislation or HMRC's other guidance.  It confirms that businesses should treat an application as provisionally accepted whilst waiting to hear from HMRC, as well as addressing what businesses should do if they had followed the previous version of the guidance.

At the same time, HMRC have updated VAT Group and divisional registration (VAT Notice 700/2) with further guidance on what to do while waiting for a response to a VAT grouping application (see paragraph 2.17).

If you have any comments on this guidance please send them to atttechnical [at] att.org.uk (subject: VAT%20grouping%20guidance)

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