VAT 68 Form: A Guide to Transfer of VAT Registration Number
Imagine you’re in the middle of selling your business or restructuring it into a limited company and suddenly realise keeping that established VAT number could save you a world of hassle with suppliers and customers. That’s where the VAT 68 form comes in. HMRC uses this form to request a transfer of a VAT registration number during ownership or structural changes. As of January 2026, the process is consistent and reliable for UK business owners navigating these transitions.
Transferring your VAT number ensures continuity with clients, suppliers, and HMRC. Losing it could mean new paperwork, delays in reclaiming input VAT, and confusion in your accounting software. By using VAT 68, you keep everything seamless, preserving a trusted VAT history and safeguarding cash flow. Sterling & Wells helps clients manage this transfer efficiently, making what could be a stressful process smooth and straightforward.
Why Transfer Your VAT Number?
Many business owners overlook the advantages of transferring an existing VAT number. Imagine having spent years building your reputation with suppliers and customers, all linked to your VAT number. Changing it unnecessarily could disrupt credit arrangements, complicate invoicing, and slow down operations during a sale or restructure. VAT 68 allows you to maintain this continuity, ensuring your business continues as if nothing changed.
This is particularly relevant if you’re converting from a sole trader to a limited company, taking over a partner’s share, or purchasing a business as a going concern. Beyond convenience, transferring the VAT number protects your cash flow, prevents unnecessary registration delays, and keeps digital record-keeping consistent for audits or HMRC inspections.
When Do You Need Form VAT 68?
VAT 68 is used when the legal entity of a business changes but the underlying business activity continues substantially the same. This includes sales as a going concern, acquisitions, or incorporation. The key is continuity: the business must operate in the same way, from the same location and at a similar scale. HMRC scrutinises applications closely to prevent misuse, so timing and accuracy are crucial.
Partial transfers, such as only selling certain assets without transferring the full operation, do not qualify. In those cases, a standard VAT registration applies. Using VAT 68 correctly at the right moment ensures a smooth handover and prevents delays in VAT submissions or reclaiming input tax.
Step-by-Step: Completing Form VAT 68
To complete VAT 68, start with the latest version from HMRC’s website. Pair it with a VAT registration application (VAT 1 or the online equivalent) because HMRC processes them together. Section 1 captures the transferor’s details, including VAT number, business name, address, and the effective transfer date. Accuracy here is critical to prevent mismatches in HMRC records.
Section 2 covers the transferee, requiring business name, address, nature of business, and relevant NI numbers. Both parties must sign and date the declarations, attaching supporting documentation such as sale agreements or incorporation papers. Submission can be via email to HMRC or by post, with confirmation typically sent within three weeks.
Key Requirements for Approval
HMRC approval is contingent on several factors. The business must continue in a substantially similar way, and financial continuity matters: any outstanding VAT debts must be settled before the transfer. Proof of legal changes, such as contracts or Companies House filings, is required, and the VAT number cannot be linked to another entity.
Additionally, your MTD-compliant software must be updated post-transfer to ensure smooth digital submissions. A well-prepared application reduces back-and-forth and safeguards business continuity.
Deadlines & Timelines Explained
While there’s no statutory deadline for VAT 68 itself, timing is critical. The form should be submitted just before or at the point of transfer to align with the effective change of ownership. HMRC typically processes requests within three weeks, but delays can affect VAT coverage and input tax recovery. Planning is especially important if your business crosses VAT thresholds during the transfer.
Coordinating the VAT 68 submission with solicitors or completion dates ensures all legal and accounting steps align. Post-approval, the first VAT return should cover the period from the transfer date.
Penalties, Requirements & HMRC Guidance
Failure to submit VAT on time after registration or transfer can attract penalties ranging from 5% to 15%, depending on the length of the delay. Errors or omissions on associated forms may trigger additional surcharges, particularly if HMRC considers them careless or deliberate. Keeping complete records for six years is mandatory, and aligning MTD-compliant software with the new VAT number is essential for ongoing compliance.
HMRC guidance, including VAT Notice 700/9 for transfers and TOGC scenarios, provides step-by-step instructions. However, navigating these rules can be complex.
Common Mistakes to Avoid
Common errors include mismatched transfer dates, incomplete proof of continuity, and ignoring outstanding VAT liabilities. Businesses sometimes fail to update software or notify suppliers, which can create downstream errors in returns and input tax reclaims. These mistakes can lead to delays, penalties, and extra administrative work.
By reviewing HMRC checklists and involving professional advisors, many pitfalls can be avoided. Sterling & Wells ensures every detail is double-checked, from supporting documents to digital record alignment, reducing the risk of rework and maintaining uninterrupted VAT compliance.
Real-World Scenarios
Consider a sole trader baker incorporating their business: VAT 68 allowed her to retain her long-standing VAT number, keeping supplier relationships intact and avoiding new registration delays. Similarly, a garage purchased as a going concern preserved its VAT history for warranty claims. Even consultancy mergers benefit, as transfers simplify filings and reduce administrative hours.
These examples illustrate why thousands of UK businesses use VAT 68 annually. The form ensures continuity, protects cash flow, and maintains credibility built over years of compliance. Sterling & Wells has guided numerous clients through these scenarios, providing reassurance and practical support.
How Sterling & Wells Makes It Effortless
Sterling & Wells prepares VAT 68 applications, liaises with HMRC, and integrates transfers into broader compliance strategies. From updating MTD-compliant software to coordinating with solicitors and filing returns, every step is managed. Our fixed-fee service provides predictability and ensures clients avoid common pitfalls, turning potential stress into smooth transitions.
Clients benefit from end-to-end oversight, including property accounting, self-assessment, and company compliance, ensuring all reporting aligns post-transfer. Sterling & Wells’ proactive approach safeguards business continuity and allows owners to focus on operations, not administrative hurdles.
Conclusion
Once HMRC confirms approval, update all invoices, accounting software, and supplier records to reflect the transferred VAT number. Ensure your first return covers the period from the transfer date and submit it on time to avoid any penalties. Even small delays or mismatched reporting can create issues with input VAT reclaims or supplier audits, so staying organised is key.
Beyond the immediate post-transfer steps, monitor your VAT number and returns regularly. Annual reviews help ensure thresholds are observed, records remain accurate, and any changes in business structure or activity are promptly reported. Sterling & Wells continues to provide support at this stage, offering guidance on adjustments, software updates, and ongoing compliance, keeping your VAT operations smooth and audit-ready.
Sterling & Wells
We are Sterling & Wells — a UK-based team of accountants and tax advisors helping individuals and businesses stay fully HMRC compliant. From VAT and bookkeeping to self-assessments and tax planning, we’ve got your finances covered.