HMRC cuts VAT paper registrations

HMRC has removed VAT paper registrations – taxpayers must now use the online system. 

This change was made last month in an attempt to streamline processing times for VAT applications. 

Certain businesses may still be required to submit their applications using a paper VAT1 form. This applies specifically to taxpayers who are eligible for an online application exemption.

If businesses or agents encounter challenges with the online application, they must contact the VAT helpline to request a VAT1 form. 

There is no need to seek an exemption in advance, but HMRC may inquire about the reason for choosing the postal application method.

The VRS cannot be used for specific types of registrations, and a comprehensive list of affected businesses is currently unavailable. According to ICAEW’s Tax Faculty, this includes, but is not confined to:

1. Businesses seeking a ‘registration exception.’
2. Businesses opting for the agricultural flat rate scheme.
3. Overseas partnerships.
4. Entities (excluding UK partnerships or non-established taxable persons) without a UTR.

Businesses falling under these categories are advised to contact the VAT helpline to request a VAT1 form. HMRC is actively working to incorporate customer journeys for these business types into the online VRS at the earliest opportunity. Once online registration is available, the paper form will no longer be accessible for these businesses.