HMRC to change VAT authorisation process from October

HMRC is removing the functionality to copy across agent authorisation for VAT from the government gateway account, increasing security with new client authorisation email process

Sara White, Editor, Accountancy Daily

The removal of the service comes into effect from 1 October 2023.

Currently accountants can use their agent services account (ASA) to copy over existing client relationships for VAT and income tax self assessment (ITSA) customers from their old government gateway ID.

ICAEW tax faculty warned: ‘After this change, the only way for agents to become authorised and gain access to digital services for VAT will be to use the authorisation service available in the ASA. This involves sending a link to the client that they need to accept.

‘If clients are unable to receive or complete the authorisation digitally, they should phone HMRC and ask to be transferred to HMRC’s extra support team, who can complete the authorisation. The agent needs to generate the link so that HMRC can complete the process on behalf of the client.’

HMRC has informed agents that the service will be withdrawn in the next few weeks.

‘We will be removing the functionality to copy across existing VAT clients to ASA from October this year. Ensure that your existing VAT clients are copied across to your ASA before this date,’ HMRC said.

Once this functionality is removed accountants will be able to authorise VAT clients using the digital handshake authorisation route available in their ASA.

Accountants should ensure that their existing VAT authorisations are copied across to their ASA as soon as possible. If a firm has more than one online services account for agents with a separate government gateway ID the process needs to be completed once for each account.

The copy functionality will remain for ITSA customers.