HMRC still unable to register private schools for VAT

VAT on private school fees will be charged from 1 January but HMRC will not be able to accept registrations until 30 October as legislation will not be passed until the Budget

This is a major concern for private schools and tax advisers as it takes HMRC up to 30 days to process VAT registrations.

HMRC has now confirmed that schools will be able to register for VAT from 30 October and it will be allocating extra staff to handle demand.

An HMRC spokesperson told Business & Accountancy Daily: ‘Extra resource has been planned into VAT registration to manage the additional registrations relating to this change.’

Currently more than 80% of VAT registration applications are being processed by HMRC within 20 working days or four weeks, while only 10% are taking more than 40 working days - or nearly six weeks - to process.

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