How long to get a VAT number?

[jonsp]

Just started a new limited company and decided to register for VAT from the outset. Filled in the application and got an email saying we'll let you know in 40 working days - obviously about 2 months.

1/ Does it really take 2 months to get a VAT number now or do they quote that as absolute worst case?

2/ The email pointed out I can't charge VAT until I get the number but I can increase price by 20% to allow for VAT. Presumably this means if I start making sales now if/when my application is accepted Ill have to pay VAT? Im pretty much ready to go now obviously I don't want to wait 2 months to get the number

[StevieBee]

I got mine in about two weeks. That was 2.5 years ago.

I believe you can add a line on invoices to say that the amount includes VAT but VAT number pending and then advise them the number when you get it.

[sleepezy]

Point 2 was answered on here recently - in essence charge including the VAT amount (ie presume a 20% uplift) putting a note on the invoices saying VAT number applied for.

Once you have been registered, re-issue the invoices with the VAT element separately shown (and VAT number on invoice etc.). 1st VAT return will obviously include all these sales and your customers don't have to pay any extra at that point and you don't have to loose out.

Only minor issue may be your customers can't claim the VAT element back until you re-issue the invoice.

[jonsp]

Thanks Steve. 2 weeks would be fine - obviously 2 months I'd have a problem with.

Get that about adding 20% and saying VAT number pending but as a new business trying to make my way in the world it's another potential objection. All potential clients are B2B so charging VAT isn't an issue.

Hopefully they did just say 2 months to cover themselves as a worst case.

[MaxFromage]

As accountants, we register for VAT all the time. They are variable, but the last one I did was 27th March. Registration came through on the 23rd May...

That was a standard registration. Hopefully yours doesn't include property, as they take twice as long...

[jonsp]

Thanks Max. No property, 100% B2B services, explained what I did and why I wanted to register from the outset.

Do you think it might be worth calling them to get a realistic timespan? Significant % of new clients will be signed up online so I really don't want to be charging +20% and explaining I haven't got my VAT number. That's seems to me like another red flag.

[MaxFromage]

I'm afraid you can't speed up the process, you just have to wait. They'll only look into it for you after the 40 working days have passed.

This may help:

https://www.icaew.com/insights/tax-news/2023/may-2...

[MaxFromage]

Current timeline for VAT registration today:

You can expect a reply by
3 August 2023
This date is an estimate and may change.

More information

We are currently processing requests received on 27 MARCH 2023.

If you sent your request after 27 MARCH 2023, please do not contact us as it has not been processed yet.

If you’ve finished with this guidance, you can exit now and leave feedback (opens in new tab).

[jonsp]

Thanks Max, very helpful. Even if its not what I wanted to hear.

Going to have a think about how best to work this.

[DSLiverpool]

jonsp said:

Just started a new limited company and decided to register for VAT from the outset. Filled in the application and got an email saying we'll let you know in 40 working days - obviously about 2 months.

1/ Does it really take 2 months to get a VAT number now or do they quote that as absolute worst case?

2/ The email pointed out I can't charge VAT until I get the number but I can increase price by 20% to allow for VAT. Presumably this means if I start making sales now if/when my application is accepted Ill have to pay VAT? Im pretty much ready to go now obviously I don't want to wait 2 months to get the number

Just done this took a week - best of luck with the new project.

[jonsp]

Just to close this down got my VAT number through in todays post, so 11 days.

Presumably they do quote 40 days as a worst case. Good news.

[MaxFromage]

Like everything with HMRC, there's no logic to anything. A client applied themselves the middle of last month. Still waiting. I can only imagine the state of their internal systems, when one can apply weeks after another and get processed first...

[jonsp]

I wonder if there's a regional aspect to this. Chap above in Liverpool said he got his number in a week, I'm in Chester so we'd likely fall in to the same region. Perhaps this region is more efficient/has less work on?

If they do process nationally then, as you say, it would be madness if I could apply after your guy and jump the queue ahead of him.