There is a currently evolving scam risk affecting new VAT registrations in which scammers are fraudulently linking VAT services to a Government Gateway ID they control before genuine business owners have set them up.
Updated January 2026
What is happening?
The new scam threat involves scammers fraudulently linking VAT services to a Government Gateway ID they control, before the genuine business owner has the chance to set these up themselves. The aim of the scam is to submit false VAT returns and divert repayments into their own bank accounts.
After attempting to link a legitimate VAT account to the Government Gateway account, users received an error message stating that the VAT account was already assigned to another Government Gateway account.
This means that legitimate businesses can’t access the VAT account or submit the real returns.
These accounts are then being used to submit fake VAT returns, requesting refunds for small amounts to avoid detection from HMRC. The repayment from HMRC is diverted into the scammers account as they control the gateway.
What to do if this happens to you
If you discover that the VAT service has already been linked to another account, we recommend you take the following steps:
- Call HMRC VAT Online Services on 0300 200 3701
- Follow the options given in this sequence: Option 1 – Option 2 – Option 3
- Provide HMRC with your VAT details, which include
- VAT Registration Number
- Registration date
- Postcode associated with the VAT registration
HMRC will arrange to deregister the VAT service from the fraudulent gateway, which may take up to 7 days. Once that has been done, you will be able to add VAT to your own genuine Government Gateway ID.
What can I do to avoid becoming a victim of the scam?
After VAT registration, set up your Government Gateway ID promptly and add VAT as a service as soon as possible.
Stay alert if you have any issues adding VAT to your account, especially if you receive any unexpected messages.
As of 19th January 2026, HMRC require the VAT registration application number when adding the VAT service line onto the gateway in order to help combat the VAT fraud.
How we can assist
Our VAT and Indirect Tax team can help prevent you and your business from falling victim to fraudulent scams. Contact us for a risk review to help you identify any potential weaknesses in your VAT controls and processes.
