Accountants want freelancers and would-be entrepreneurs to tell them their experience of registering for VAT with HM Revenue & Customs.
Dubbed the ‘VAT Waiting List Problem,’ the Institute of Chartered Accountants in England and Wales says delays are “the biggest VAT issue” for their clients.
The backlog, which covers both offline and online registrations, explains why it can currently take some individuals over six months to obtain a VAT number.
Without the number, micro businesses, such as freelancers, face cash flow problems because they struggle to get their invoices paid.
Last week, HMRC posted a notice on its website, saying: “"Please note that there are delays with the processing of both online and paper VAT registration applications.
"We are taking steps to improve this situation but please try to avoid contacting us to see how your application is progressing as this may further extend processing times.”
The ICAEW this week acknowledged the tax authority is trying to improve the situation, but said “we have to say that this notice is not particularly helpful or informative.”
As a result, the institute wants individuals queuing for VAT to feedback their experiences of VAT registration and the general approach and questioning by officials.
The group wants to know whether HMRC is still asking questions to which they already have the answers, or asking non-VAT questions, such as those to do with income tax, before granting registration.
Submissions to the
institute's Tax Faculty, should ideally be made before Friday June 29, in order for them to “press HMRC to improve” VAT registration as quickly as possible.
Jun 20, 2007
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