Summary
- HMRC updated VAT Notice 700/2 (Group and divisional registration) on 22 July 2026, revising the reply-timescale guidance in sections 2.15 and 6.1 for group registration applications and changes in group circumstances. [gov.uk]
- The notice confirms HMRC’s expected acknowledgement window of around 40 working days for group registration applications—up from the historic 15 working days—with applicants asked not to chase before that point. [rossmartin.co.uk], [taxadviser…gazine.com]
- VAT grouping lets two or more eligible persons (bodies corporate, individuals, partnerships) be treated as a single taxable person; grouping and divisional registration cannot be combined. [gov.uk]
Article
HMRC has issued a fresh update to VAT Notice 700/2, “Group and divisional registration,” on 22 July 2026, with the changes concentrated on the reply-timescale wording in sections 2.15 (specified bodies/eligibility) and 6.1 (changes in the group’s circumstances). The notice explains the framework: VAT grouping is a facilitation measure allowing two or more eligible persons—bodies corporate (including LLPs), individuals and partnerships—to be treated as a single taxable person, while divisional registration lets a single corporate body register its self-accounting units separately; the two facilities cannot be combined. On timing, HMRC’s guidance continues to reflect an extended acknowledgement period of roughly 40 working days for group applications (previously 15), instructing applicants to contact the VAT Registration Service only if they have not heard back after that window, to avoid delaying processing. All references in the notice to the UK include the Isle of Man.
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