Expect more VAT delays

Revenue & Customs has warned that the VAT registration bottleneck is unlikely to ease before autumn.

 
Delays in routine registrations continue to cause cashflow problems for businesses and frustration for Accountancy practitioners. Speaking at an ICAEW Tax Faculty event last month, Theresa Middleton, a Revenue director, said the problems were being urgently dealt with but she warned delegates it would be autumn before they saw much improvement.
 
The Revenue’s website is asking people not to chase applications sent less than six weeks ago and said the average processing tome stood at 38 days, although many people have reported delays of more than double this.
 
Causes of the delays include the carousel fraud crackdown, incorporations resulting from the new managed service company rules and Revenue staffing issues.
 
The ICAEW’s Tax Faculty has published a new report suggesting the Revenue should compensate affected businesses and make operational improvements.
 
John Arnold, chairman of the faculty’s VAT committee, which produced the report, said:’ What we are looking for is immediate action from the Revenue to compensate business for the delays and longer term action to speed up procedures.’

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