HMRC has issued new guidance explaining what businesses should do if they have not yet received confirmation from them that their application to form, disband, join, leave, or alter the members of a VAT group has been accepted.

HMRC confirm that if you are waiting for a response to your VAT grouping application, you should:

• treat the application as provisionally accepted on the date you submitted it online or the date it should be received by HMRC if you submitted it by post, and
• account for VAT accordingly.

While you are waiting to receive your VAT grouping registration number, you may receive:

• an automated assessment letter,
• letters asking for payment of any automated assessments, and
• notification of a default surcharge because you have not filed your tax return.

You will not need to take any action in response to any of these notices.  HMRC confirm they will automatically cancel them once your group application is fully processed.

HMRC further confirm that they will not take recovery action for any debts listed in its guidance which come about because a trader followed it. HMRC state that other VAT debts may still subject to recovery actions.

The guidance can be found at: Revised guidance on dealing with VAT grouping registration – GOV.UK (www.gov.uk)

Please contact us if you have any questions around VAT, we can assist with group registrations and advise on their advantages and disadvantages.