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A new company is asking for a payment of £320. should I pay this fee?

Updated on October 16, 2026

Last updated: 14 October 2026

Do you have to pay a fee to register your company on a VAT registry?

No. VAT registration with HMRC is free, and there’s no official “VAT registry”, “intercom VAT register” or similar directory that UK businesses must pay to join. Letters or emails asking for a fee, such as £320, to register or “validate” your VAT number are usually scams or paid listings dressed up as official. Don’t pay. HMRC issues your VAT number for free and publishes nothing you need to pay for.

How genuine VAT registration works

  1. You apply online through HMRC, or your accountant applies for you

2. HMRC checks the application and may ask for more information

3. HMRC sends your VAT registration certificate to your business tax account

4. You use the VAT number on invoices from your effective date

There is no fee at any stage. Companies House charges for incorporation and annual confirmation statements, but not for VAT.

Signs of a fake VAT registry demand

  • A demand for payment to “register” or “renew” your VAT number
  • Official-looking names, crests or EU stars, often from a company based abroad
  • Small print saying it’s an optional listing or advertising service
  • Pressure to pay within a few days
  • Bank details for an overseas account

Some of these letters arrive right after you register for VAT or incorporate, because company and VAT data is public.

What to do if you get one

Step Action
1 Don’t pay or reply
2 Check your HMRC business tax account for genuine messages
3 Forward suspicious emails to phishing@hmrc.gov.uk
4 Report fraud to Action Fraud (or Police Scotland in Scotland)
5 If you have paid, contact your bank immediately

If you’ve already paid

Contact your bank straight away; card payments may be recoverable through a chargeback. If you signed a contract for a directory listing, take advice before paying further invoices. Many such contracts are not enforceable if they were misleading.

Example

A new company receives an invoice from “UK VAT Registry Services” for £320 two weeks after its VAT number is issued. The director checks her HMRC account, which shows no such charge, and forwards the letter to her accountant. It is a paid listing service, so she ignores it and reports it.

Checking a VAT number

To check a supplier’s VAT number, use HMRC’s free online “Check a UK VAT number” service on gov.uk. You never need to pay to verify a number.

Other fees that are genuine

Some real costs are easy to confuse with VAT scams: Companies House fees for incorporation and the annual confirmation statement, ICO data protection fees, and fees for registering a trademark. Check that the sender is the real organisation (gov.uk for Companies House and HMRC, ico.org.uk for the ICO) before paying anything that looks official.

Protect your business

  • Tell staff who handle post and invoices about these scams
  • Only pay invoices that match a purchase order
  • Keep your HMRC login details secure
  • Use your accountant as your agent for HMRC contact

Frequently asked questions

Does HMRC charge for VAT registration?

No, it’s free.

Is there an EU VAT register I need to join?

No. UK businesses register with HMRC only, unless they need an EU registration for EU sales.

Is the letter illegal?

Some are legal but misleading listings; others are fraud.

Will HMRC ever ask for a fee by letter?

Not for registration.

Related: checking a VAT number and VAT registration checks.

Talk to Accotax

Want this handled for you? Our team at Accotax can help with VAT registration. See our VAT accountants service, or contact us for a free, no-obligation quote.

This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.

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