Star Sterling Outsourcing

UK Masses Are Facing Delays In MTD VAT Registration

Making Tax Digital for VAT has always been under criticism for delays in VAT registration & check procedures. After Covid-19 and the EU transition, VAT registration takes more than 60 working days. 

One of the main reasons for the delay in VAT registration is the massive volume of online applications. Additionally, the second biggest reason for VAT Delays could be the premature application of VAT registration.

5 Reasons the UK Masses are Facing Delays

In recent years, the UK government has been making changes to the taxation system. One of these changes was to remove VAT registration for small businesses with a turnover below £85,000. This was because it would make life easier for small businesses and reduce the administrative burden on HMRC. However, in January 2019, this threshold was increased to £85,000, leading to delays in MTD VAT registration.

The increase in threshold is expected to affect about 1 million small businesses, which will need to register for VAT from April 2019 onwards instead of being automatically exempted from it as before. This has led to delays in MTD VAT registration as businesses struggle with this change.

Let’s discuss why the new online VAT system is creating turmoil and delays. It usually takes around 30 days to register VAT. Since August, the VAT registration is taking more than 12 weeks. However, the government has stated that the VAT registration issue must be resolved within 40 working days. The service level agreement was previously on 30 working days.  

VAT is the first tax to get fully transitioned into a digital system. Therefore, we have comprehended why there are delays in VAT registrations. 

Suggestion to Eliminate VAT Registration Delays

No worries, we have got your back! There are some tips to eliminate VAT Registrations Delays:

Plan Ahead

The foremost solution is to plan in advance by:

Eliminate Common Errors in Application

After planning, try to eliminate common errors by manually intervening in;

Talk to an Expert

If you find any trouble in VAT registration, talk to our well-trained accountant, Today. 

For more helpful advice on VAT planning & MTD, outsource Star Sterling Outsource.

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