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The current high volume of VAT registration applications may be causing delays, says HMRC. In a note to the Chartered Institute of Taxation, the department says it is processing around 70% of these applications within 30 days and most of those within five working days. It states it is prioritising this work and expects to be processing 95% of VAT registrations within 30 days by the end of March 2021.
HMRC is encouraging businesses to use the online registration service wherever possible. It is generally faster than applying by paper especially if the application can be fully processed straightaway.
HMRC has also provided a list of common errors that can cause delays.
The department is considering how it can improve the registration process by resolving more cases by telephone and engaging with applicants in a different way to gather any further required information.
