June 2023 VATwatch

Welcome to my June newsletter. I hope you’re all enjoying the beautiful weather we’ve been having as much as I am!

New VAT road fuel scale charges have been published by HMRC. They came into effect on 1^st May and will stay in effect until 30 April 2024.

Businesses can use the new VAT fuel scale charges from the start of the next prescribed accounting period beginning on or after 1 May 2023. The scale charges are used where a business provides road fuel for private use; the VAT is calculated on a flat-rate basis according to the scale charge.

When using the fuel scale, it is important to check each car’s CO2 emissions figure to ensure the correct rate is applied.

With effect from 22 May 2023, HMRC has closed its VAT Registration Helpline.

HMRC stated that taxpayers can expect a reply on their application within 40 working days and that you should not contact HMRC for an update until at least that long has passed.

If taxpayers haven’t received a reply within this timeframe they can email enquiries via vrs.newregistrations@hmrc.gov.uk and HMRC will respond within five working days. 

Speaking at the VAT at 50 Conference at Chartered Accountants Hall on 22nd May, Jim Harra explained that 85% of calls to the helpline were from agents chasing up VAT Registrations and so closing the line freed up the time of a number of staff to actually process registrations, rather than responding to calls.

He also commented that he was aware that there had been time delays in relation to VAT Registrations but that these had now been resolved and the turnaround time was now 7 days.

I am not sure where that information comes from as that is certainly not my experience, nor that of my colleagues in the VAT Practitioners’ Group. VAT Registrations are still taking much longer than they should.

Thank you for taking the time to read this VATwatch round-up.