What to do if your VAT number is ‘stolen’ and registered to a different Gov Gateway

What to Do When Your VAT Number Is ‘Stolen’ and Registered to a Different Government Gateway Account

Experiencing issues with your VAT registration can be a daunting and frustrating process, especially if your VAT number has been compromised and registered under someone else’s Government Gateway account. Having navigated this challenging situation firsthand, I want to share a comprehensive guide to help small business owners and startups handle similar cases effectively.

Understanding the Problem

Approximately ten months ago, my company registered for VAT. Shortly after adding our VAT number to our Gov Gateway tax account, we received a notification indicating that the number was already registered to another account — a clear sign that our VAT number had been ‘stolen’ or fraudulently registered. This situation led to our VAT being locked pending an investigation by HM Revenue & Customs’ (HMRC) fraud department.

The experience was stressful; contact with the VAT helpline (0300 200 3700) was fraught with automated messages and long wait times. Nonetheless, after persistent efforts over nearly a year, we successfully resolved the issue. We managed to preserve our financial reserves for paying taxes and avoided paying penalties or fines. If you find yourself in a similar predicament, here are essential tips and strategies based on my experience:

1. Use the Correct Helpline Number and Approach

• Dial 0300 200 3701 – Not the initial number you might find or try.
• State your reason as ‘suspicious activity’ – This keyword facilitates a quicker transfer to the relevant department.
• Request to speak to Customs and Excise – When they transfer you, mention you intend to speak to the VAT helpline. This approach can significantly reduce waiting times, which can be lengthy and painful.

2. Maintain Detailed Records

• Keep a comprehensive log of all communications, letters, and notices, including their sending dates.
• This timeline information is crucial during support interactions, as HMRC support agents have access to their own records and can verify your case history.

3. Persist with Support Calls

• If an agent appears uncooperative or unhelpful, don’t hesitate to hang up and call again.
• Sometimes, a different representative can provide better assistance.
• In my case, a second agent was instrumental in moving my case forward and stayed on the call until the issue was resolved.

4. Follow Official Guidance and Wait for Instructions

• Only attempt to reassign or update your VAT number once you receive official communication from HMRC.
• The process is often delayed, and premature efforts may be unsuccessful or complicate the situation further.

5. Create and Use a New Government Gateway Account

• Never try adding your VAT number to your original account — it will likely result in failure.
• Instead, set up a new Govt Gateway login dedicated solely to resolving this issue.
• When you receive the required notices, add your VAT number to this fresh account.
• During my case, success was achieved only after the third attempt when I was prompted for my VAT registration reference number (found on the VAT registration confirmation letter, starting with ‘099’). Providing this was a crucial step in reclaiming control over the VAT number.

6. Multiple Accounts Are Permissible

• Do not worry if other tax details (e.g., EORI import numbers) remain associated with your old account.
• You can operate multiple Government Gateway accounts to manage different tax responsibilities smoothly.

7. Pay Your VAT and Manage Penalties

• Once the VAT issue is resolved, pay any outstanding VAT immediately.
• Doing so will automatically wipe associated penalties related to unpaid VAT during the period of the dispute.

8. Handle Penalties Carefully

• You will likely receive penalty notices during this process.
• Immediately request verbal confirmation from HMRC that you will not need to pay these penalties due to the ongoing dispute.
• Note the date of this confirmation.
• After the issue is fully resolved, contact HMRC again, providing your case reference, and request the penalties be appealed.
• You can do this via the ‘Appealing VAT penalty’ section on the HMRC website.
• Do not pay penalties until your appeal is formally accepted.

Final Thoughts

Dealing with a ‘stolen’ VAT number is an arduous journey, often riddled with delays and administrative hurdles. However, persistence, detailed record-keeping, and strategic communications can help resolve the issue. Remember to stay patient and methodical throughout the process.

While it’s an unfortunate situation, overcoming it offers significant peace of mind and keeps your business compliant. I hope sharing this experience and these tips proves helpful to fellow small business owners facing similar challenges. Good luck, and stay resilient!

Author: bdadmin