In the ever-changing landscape of tax legislation and system modernisation, it's crucial for accounting professionals to stay informed about developments that affect VAT handling. At Everest & Co. Accountants, we're dedicated to keeping you updated on the most recent changes that impact your VAT dealings.
A Significant Transition: HMRC Advances to a Digital Handshake
Commencing 16 February 2024, there will be a significant change impacting how agents facilitate VAT representation for their clients. HMRC is discontinuing the legacy VAT for Agents registration service within the Online Agent Authorisation (OAA) system in favour of the already familiar process: the digital handshake within HMRC's Agent Services Account (ASA).
Why This Change Is Important
The impetus for this change is HMRC's drive to rectify legacy IT complications. The older systems, while once adequate, must now give way to a more streamlined, secure, and efficient digital framework. What does this entail for you as an agent or a client requiring VAT representation?
Essential Highlights of the ASA Transition
Unified Access: ASA will serve as your single point of entry for a variety of online tax services, rendering obsolete the need to navigate multiple legacy platforms.
End of Mapping: The necessity of transferring details to ASA using authorisation codes from OAA is eliminated. ASA makes this process straightforward and integrated.
Direct Setup: If you hold an existing HMRC online services account with at least one authorised client, creating your ASA is immediate.
Actions to Take Without Delay
Should you currently utilise OAA for VAT, it's crucial to adapt swiftly. With the service being phased out as of 16 February 2024, the transition to ASA should be prompt.
Be mindful that authorisation codes generated by OAA need to be applied by 18 March 2024.
Examining the Digital Handshake
The most notable part of this shift is the approach to processing new VAT authorisations. Agents will now send a web link to their clients, who complete part of the authorisation through this digital handshake. Clients have a 21-day deadline to act, after which a new link will need to be generated.
Services Remaining in the Legacy System
As VAT for Agents transitions entirely to ASA, several services will remain accessible through your existing VAT account—for instance, VAT EU refunds and the VAT One Stop Shop.
Adapting to the Digital Movement
Although change can be intimidating, this move towards a digital-centric strategy is essential for more secure and efficient VAT obligation management.
Clients, your active participation is vital. Ensure that your Government Gateway ID is prepared to fulfil your role in the VAT authorisation process.
For overseas agents, the procedure mirrors that of UK-based practitioners, creating a uniform process for all.
Our Ongoing Support
Our main concern at Everest & Co. is to assist you through these changes, ensuring a smooth shift for all our clientele. By proactively updating our practices, we pledge to maintain the excellent service you've come to expect from us.
This adaptation is not merely about keeping pace with technological advancements—it's about improving our services for you every single day.
For more comprehensive information or support with setting up your ASA, don't hesitate to contact our team. We're here to make navigating the digital handshake as straightforward as possible.
Author - Mr. Anuj Paudel