HMRC VAT Security Changes 2026 New VAT Enrolment Requirement for Business Tax Accounts Explained

 

Since 19 January 2026, HMRC has introduced a new verification step aimed at tackling VAT fraud. Some businesses enrolling for VAT services on their online Business Tax Account may now be required to provide their VAT registration application reference number. 

 

This reference number is issued during the VAT registration process and acts as an additional verification layer to confirm the legitimacy of the enrolment request. 

The measure helps ensure that only authorised individuals can activate VAT services linked to a business’s VAT registration. 

 

 

The VAT application reference number is typically provided during the registration process. Businesses can find it in the following places: 

 

• Online VAT registration: The reference number appears on screen after submitting the application and is also sent by email confirmation. 

 

• Paper VAT registration: If the application was submitted by post, the reference number should appear in written correspondence from HMRC confirming the VAT registration. 

 

The reference number generally starts with “0990”, which helps businesses easily identify it. 

 

 

To minimise delays or security risks, HMRC strongly advises businesses that are registering for VAT to enroll for the VAT service on their Business Tax Account as soon as they receive their VAT registration number. 

 

Keeping the VAT application reference number safely stored will also help ensure a smooth enrolment process if HMRC requests the additional verification. 

 

 

 

Businesses must register for VAT with HM Revenue & Customs if their taxable turnover exceeds the VAT registration threshold, which is currently £90,000 within a 12-month rolling period. 

 

Once this threshold is exceeded, businesses must register within 30 days. Some businesses may also choose to register voluntarily even if their turnover is below the threshold, particularly if they want to reclaim input VAT on business expenses. 

 

 

Under the current VAT penalty system introduced by HM Revenue & Customs, businesses may face penalties and interest charges if VAT payments are made late. 

 

If VAT remains unpaid: 

 

• A 3% penalty applies after 15 days 

 

• Another 3% penalty applies after 30 days 

 

• Additional interest accrues daily after that point until payment is made. 

 

• Interest is charged on outstanding VAT balances until payment is made. 

 

Businesses should ensure VAT returns are filed and paid on time to avoid unnecessary penalties and interest. 

 

 

VAT-registered businesses are generally required to issue VAT invoices when supplying goods or services to other VAT-registered businesses. 

A valid VAT invoice should normally include: 

 

• The business name, address, and VAT registration number 

 

• A unique invoice number 

 

• The invoice date and supply date 

 

• A description of goods or services 

 

• The VAT rate applied 

 

• The VAT amount charged 

 

• The total amount payable including VAT 

 

Proper VAT invoicing ensures businesses can correctly account for VAT and reclaim input VAT where applicable. 

 

 

The new VAT service enrolment requirement introduced by HMRC highlights the growing focus on digital security and fraud prevention in the UK tax system. At the same time, businesses must remain aware of other key VAT obligations, including registration thresholds, payment deadlines, and proper invoicing requirements. 

 

 

VAT compliance can be complex. If you need help or advice on any aspect of tax, please get in touch with us today to find out how we can assist you with your VAT compliance.