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What is a VAT2 Form?

Updated: May 27, 2023

Value Added Tax (VAT) is a broad-based consumption tax levied on the sale of goods and services. It is an essential part of the UK's tax system and plays a crucial role in the national economy. When setting up a partnership in the UK, it's important to register for VAT if the turnover exceeds the current threshold or if you expect it to in the near future. To provide the necessary details of partners when registering a partnership for VAT, the form VAT2 is used.


What is a VAT2 Form


Understanding VAT2 Form

Form VAT2 is designed to gather information about the partners in a business partnership. It asks for personal details such as names, addresses, National Insurance numbers, and dates of birth. It also requests information about the partners' roles in the business and their share of the profits or losses. This form is supplementary to the VAT1 form, which is used to register a business for VAT.


Use a VAT2 to report to HMRC any partner of a partnership that registers with VAT. To properly register the association, you need to fill out a VAT2 or apply online.


VAT2 Form

How to Complete the VAT2 Form

Completing the VAT2 form is a straightforward process. Each partner in the business needs to provide their personal details. If there are more than two partners, additional copies of the form should be filled out.


How to Complete Different Sections of Form VAT2 in the UK

The Value Added Tax (VAT) form VAT2 is a crucial document for partnerships in the UK. It is used to provide the necessary details about each partner in the business. Here is a step-by-step guide on how to complete the different sections of the form.


Section 1: Partner Details

Each partner should complete one of the sections. Start at the beginning of each line and leave a space between words. Use block capitals and write clearly in ink. The details required include:

  • Full Name: Write your full legal name as it appears on official documents.

  • Signature: Sign the form to validate the information provided.

  • Date: Enter the date you are filling out the form.

  • Postcode: Provide your postcode.

  • Home Address: Write your full home address.

  • Home Telephone: Provide your home telephone number.

  • Mobile Telephone: If available, provide your mobile telephone number.

  • National Insurance Number or Tax Identifier in Country of Origin: This is a unique identifier for tax purposes. If you are from outside the UK, provide your tax identifier from your country of origin.

Section 2: Additional Partner Details

If there are more than one partner, each partner should complete a separate section with the same details as mentioned in Section 1. Continue overleaf if there are more than four partners.


Section 3: Further Partner Details

If there are more than four partners, continue to provide the same details for each additional partner. Each partner should complete a separate section.


Section 4: Final Partner Details

This section is for the final partner details. Again, the same details as mentioned in the previous sections are required.


Remember, each partner must complete a separate section of the form. It is important to write clearly and use block capitals to ensure the information is easily readable. Once all sections are completed, the form can be submitted to the relevant tax authority.

By following these steps, you can successfully complete the VAT2 form in the UK. It's crucial to provide accurate and up-to-date information to ensure the smooth processing of your tax obligations.


Submitting the VAT2 Form

Once you have completed the VAT2 form, you should submit it along with the VAT1 form. The VAT1 form is the main application for VAT registration, while the VAT2 form is used to provide additional details about the partners in the business. Both forms can be submitted by post to the HM Revenue and Customs (HMRC).


Updating Information on the VAT2 Form

It's crucial to keep the information provided on the VAT2 form up-to-date. If there are changes in the partnership, such as a partner leaving or a new partner joining, you should notify HMRC. This can be done by completing a new VAT2 form and sending it to HMRC.


When Should VAT 2 Be Completed?

TForm VAT2 should be submitted when a partnership is registering for VAT. This form provides details about each partner involved in the business. As part of the VAT registration process, this form should be submitted alongside the VAT1 form.

It's important to note that businesses must register for VAT if:

  • The VAT taxable turnover is more than £85,000

  • They expect the VAT taxable turnover to be more than £85,000 in the next 30-day period alone.

It is also possible for a business to voluntarily register for VAT even if its turnover is less than the VAT threshold.


Once a business has determined that it needs to or wants to register for VAT, the VAT1 and VAT2 forms should be filled out and submitted promptly to avoid any potential penalties for late registration.


Do I Have to Complete a VAT2 Form for Each Partner?

No, you do not need to fill out a separate VAT2 form for each partner in the partnership. The VAT2 form is designed to collect the details of all the partners in the partnership, and you can include information about multiple partners on a single form.


The form has space for details about up to two partners. If the partnership consists of more than two partners, you can photocopy the blank form or print additional copies to provide information about the additional partners.


Each partner's details will include their name, home address, National Insurance number, tax reference, and date of birth. After gathering all the necessary information from each partner, you would then submit the VAT2 form alongside the VAT1 form as part of the VAT registration process.


Does Each Partner Have to Sign a VAT2 Form?

Yes, each partner must sign and date the section of the VAT2. They must also provide their NI number or other tax identification if they are coming from abroad. This reduces the risk of delays when checking in.


 VAT2 Form

Can Businesses Voluntarily Register for VAT, Using VAT2?

Absolutely! A company can voluntarily subscribe to VAT, which can benefit the company. Remember that if a person's business is subject to VAT, they have the same obligations as any other business subject to VAT.



Why Is It a Good Idea to Get Professional Help from a Tax Accountant to Fill out Form VAT2?

The VAT2 form is a crucial document that new partnerships in the UK must complete to apply for VAT registration. It provides HMRC with details about the partnership and the nominated partner for VAT purposes. Given the complexities and importance of this process, it is often a good idea to seek professional help from a tax accountant.


Ensuring Accurate Information

A professional tax accountant has extensive knowledge of tax laws, including the intricacies of VAT regulations. They can ensure all necessary information is correctly reported, reducing the risk of errors that could potentially delay the VAT registration process or, worse, lead to penalties.


Compliance with VAT Laws

VAT laws in the UK are complex and constantly evolving. A professional tax accountant stays up-to-date with the latest changes, ensuring that your business adheres to the most current laws and regulations. This prevents non-compliance that could lead to financial penalties and damage to your business reputation.


Time and Effort Saving

Filling out VAT2 and other tax forms can be time-consuming, especially for those unfamiliar with the process. Employing a tax accountant to handle this task can free up valuable time that can be better spent focusing on your core business activities.


Professional Advice and Planning

A professional tax accountant can offer valuable advice about the VAT obligations of your business, providing insight into how to optimize your VAT returns and offering long-term strategies for effective tax management. Their expertise can help you make informed decisions, avoid common pitfalls, and maximise tax efficiencies.


Peace of Mind

By delegating the task of filling out the VAT2 form to a professional tax accountant, you can rest assured knowing that an expert is handling this vital aspect of your business. This gives you peace of mind, allowing you to focus on running your business without worrying about potential tax issues.


Conclusion

Registering a partnership for VAT in the UK involves providing comprehensive details about each partner in the business. The VAT2 form is a key document in this process. By accurately completing and promptly submitting this form, you can ensure that your business complies with VAT regulations, paving the way for a successful and compliant business operation.


Remember, while filling out the VAT2 form is a significant step in VAT registration, it's equally important to understand the VAT obligations and how to manage VAT within your business. Consider seeking advice from an accountant or tax advisor if you're unsure about any aspects of VAT registration and management. Their expertise can help you navigate the complexities of tax law, ensuring your business stays on the right side of the regulations.

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