Last updated: 14 October 2026
HMRC called about your VAT registration: what went wrong?
Usually nothing has gone wrong. HMRC often contacts applicants to check details before approving a VAT registration, especially for new businesses, voluntary registrations, businesses that expect to reclaim VAT straight away, or applications that look similar to known fraud patterns. HMRC’s risk team may ask about your business activity, suppliers, customers, premises and bank account. Answer promptly and accurately, and send any evidence requested, and the application normally proceeds.
Why HMRC checks applications
VAT registration gives a business the right to reclaim VAT, so HMRC tries to prevent fake registrations used for repayment fraud and missing trader fraud. Applications get extra checks when:
- the business hasn’t started trading yet
- the registration is voluntary and turnover is low
- a large VAT repayment is expected early on
- the business deals in high-risk goods, such as mobile phones, electronics, metals or fuel
- the director’s details or address are linked to other registrations
- information doesn’t match Companies House or other HMRC records
What HMRC may ask for
| Question | Evidence that helps |
| What does the business do? | Website, business plan, brochures |
| Who are your customers and suppliers? | Contracts, quotes, purchase orders |
| Where do you trade from? | Lease, utility bill, photos |
| Who runs the business? | ID for directors and their previous business history |
| What sales do you expect? | Invoices, forecasts, bank statements |
Was the call genuine?
Be careful: fraudsters also pretend to be HMRC. HMRC won’t ask for payment or full bank passwords on a call about registration. If you’re unsure, end the call and contact HMRC through the numbers on gov.uk. Check your business tax account for any letters.
Example
A start-up online retailer applies to register voluntarily before its first sale. It expects to reclaim £4,000 of VAT on stock. HMRC calls to ask about its suppliers and website. The director emails purchase invoices, the website link and the warehouse lease. The registration is approved two weeks later.
If HMRC refuses
HMRC can refuse registration if it isn’t satisfied that you are making, or intend to make, taxable supplies. You can ask for a review or appeal within 30 days. Meanwhile, if you are over the £90,000 threshold, you must still keep records and account for VAT from your effective date.
How to avoid delays
- Make sure details match Companies House exactly
2. Give a clear description of your business activity
3. Have evidence ready before you apply
4. Respond to HMRC within the deadline it gives
5. Use an accountant who can apply as your agent
Registering through an agent
An accountant can apply for you using agent services and deal with HMRC’s questions directly. That helps avoid mistakes in the business description and dates, which are a common cause of follow-up checks.
Frequently asked questions
How long does VAT registration take?
Often around 30 working days; longer if HMRC checks the application.
Can I trade while waiting?
Yes, but don’t show VAT on invoices until you have the number.
Will HMRC visit my premises?
Sometimes, especially for higher-risk trades.
Does a check mean I’m under investigation?
No, it’s a routine pre-registration check.
Related: what to do while your VAT number is pending and VAT registration threshold.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with VAT registration problems. 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.
