VAT grouping delays - updated HMRC guidance

HMRC has published updated guidance this week on what businesses should do if they are waiting for a VAT group registration application (or other amendment to the VAT group) to be processed, and this supersedes all earlier guidance as the advice has changed for some steps. As there are ongoing severe delays for VAT group registration applications and amendments, Revenue & Customs Brief 5/22 and paragraph 2.17 of VAT notice VAT Group and divisional registration (VAT Notice 700/2) provide details about the steps to be taken during the waiting period, and it covers points about the effective date of registration and what to do if you receive central assessments (only applicable where existing VAT registration numbers are held).

This guidance is welcomed, though we appreciate that it does not address all of the unintended consequences arising from the delays. HMRC anticipate that the service will be operating to normal delivery levels by the end of April 2022.

The CIOT published HMRC’s earlier guidance in January 2022, which is now superseded; we have retained an archived copy for reference.