VAT Registration Scam Alert

VAT Registration Scam Alert: What UK Businesses Need to Know

A new scam is targeting UK businesses during the VAT registration process.

What’s happening?

Fraudsters are intercepting newly issued VAT numbers and linking them to Government Gateway accounts they control. This gives them the ability to submit forged VAT returns and redirect repayments into their own bank accounts - often before the legitimate business has even set up its own online access.

The scam relies on a short window of opportunity: the brief delay between a business receiving its VAT number and linking it to its own Government Gateway account. Many victims only realise something is wrong when they attempt to add VAT services to their account, only to find the VAT number is already linked elsewhere.

Once the fraud has taken place, HMRC must investigate, which can cause delays in processing VAT returns - particularly problematic if the first return includes a repayment. This can disrupt cash flow and create unnecessary stress for business owners.

What can you do to protect your business?

 Take these steps as soon as your VAT number is issued: 

• Set up your Government Gateway account immediately and link your VAT services without delay.
• Stay alert to suspicious activity. If you receive unexpected emails or correspondence from HMRC, especially relating to repayments or compliance checks, contact HMRC directly. 

Stay one step ahead

HMRC is working to strengthen its systems, but acting quickly and staying alert is the best way to protect your business from this type of fraud. Speed and awareness can make all the difference.

If you would like to discuss anything further, please contact your VAT allocation or email hello@doddaccountants.co.uk