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Limited company VAT registration

Q. I started my LTD almost 4 months ago, I got the services of an accountancy company that did all the paperwork for me, including VAT registration. Problem is, after 4 months, VAT registration is still ongoing. They just argue that there are problems with HMRC, that this is happening to some of their applications and that their “managers are dealing with it” but all the information I’m getting is poor and vague. I need to keep chasing them for updates and the best I could get is that this is due to HMRC having to use additional resources to prevent fraudulent applications, but didn’t get any estimate. I called HMRC but couldn’t get any information because I didn’t start the process myself. On the meantime I’m issuing invoices without VAT (because clients obviously do not want to advance VAT), which leaves me in the unwanted position of having to re-issue invoices months later if the registration finally goes through.
I’m wondering if switching accountants or getting legal assistance would help at this point or just make it worse.
Nobody is giving me answers and time passes. Any advice?

A. Thank you for your enquiry.
I am sorry to hear that you are experiencing issues with your Limited Co. VAT registration. Unfortunately this is something all accountants are currently experiencing with the introduction of HM Revenue & Customs carrying out additional checks when verifying a company’s intention to make taxable supplies.
While this is not directly your current accountants fault, they should be keeping you well informed of the delay and providing updates where required out of professional courtesy.
Communication should be an essential part of your relationship with your accountant, and we feel that a personal service isn’t something that should be left behind when taking care of a client’s accounts.

This answer was provided by Qdos Accounting

By Contractor Doctor


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6 thoughts on “Limited company VAT registration”

  1. Paul

    I have to say I didn’t use an accountant either to set up the LTD or to register for VAT. Did it all direct with HMRC just 3 months ago and it was very easy. There was a slight delay with registering for the Flat Rate Scheme but after a quick exchange with their online chat they sorted it out immediately.
    Deal Direct – seems to be best advice.

  2. Annette

    It took me 6 months to get VAT-registered. In the end, I had to backdate a VAT invoice to a company that I had already left, as my contract had finished before the VAT registration was complete.
    So while frustrating, it’s seems it’s not uncommon !

  3. David

    I set up my VAT quite a few years ago now, but had a similar 4 month delay. When you finally get it through you only need to issue 1 additional invoice for each customer that covers just the VAT amount for that customer.

    It’s a pain, but most of us go through this.

  4. Mark

    It took about me 3 days to set up a new client’s VAT registration this time last year. I suggest you get a new accountant.

  5. JB

    Is it necessary to invoice for the VAT? When I started my business I was not VAT registered for the initial period, until I approached the threshold that required me to register. Was I supposed to retroactively charge clients for the VAT at that point?

  6. venu Nair

    You can re register again for VAT

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