HMRC closes VAT registration helpline, leaving business owners facing 40 day waits

HMRC is closing its VAT registration helpline from today, meaning business owners can wait up to 40 days for a reply from the tax authorities

HMRC today closed its VAT registration helpline, forcing business owners to wait up to 40 days to hear from the tax authorities.

The helpline, a subsidiary of the main VAT helpline, was designed to help entrepreneurs and accountants with questions about their VAT registration application.

The IRS’ figures show that more than 85 percent of calls to the helpline came from customers who wanted to be kept up to date with their applications.

The IRS has closed its VAT registration helpline, which it says will speed up processing time

From today, call center staff on the helpline will be reassigned to spend more time processing VAT registration applications instead of answering calls, HMRC said.

Entrepreneurs and sole traders who apply for VAT registration can now expect an answer within 40 days.

Customers with requests within 40 days can use the online ‘where is my answer’ tool for more information.

An HMRC spokesperson told This Is Money: ‘We are speeding up the processing of VAT registration cases by closing this helpline, which mainly deals with callers wanting an update on their registrations.

“By processing VAT registrations faster, you serve customers better than by telling them when we will complete their registration.”

The VAT helpline remains unaffected and HMRC said the decision to close the registration helpline will be reviewed.

Dave Fishwick

The closure comes as HMRC customer service launches its second strike in two weeks amid a campaign over wages, pensions, job security and severance conditions.

Customer service advisors in Glasgow and Newcastle-upon-Tyne are walking away for four days this week. Between May 29 and 31 and between June 1 and 2, staff are also expected to strike.

A spokesperson for HMRC previously said it had “robust” plans to ensure it provided “critical services” to customers.

It marks yet another frustrating wait for many small businesses, which have faced delays as HMRC takes months to secure base tax data.

It’s because HMRC saw huge cuts in its customer service workforce, from 25,000 to 19,500 in five years.