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HMRC internal manual

VAT Registration

Verbal notification of a change in partners: action to take

On receipt of notification, write (using the letter at VATREG47150) to all the partners at the addresses shown on the VAT 2 and to the partnership’s registered address (if different), requesting written confirmation of the change.

Partnership registered in a trading name

Where a partnership is registered in a trading name and a change does not result in one partner remaining as a sole proprietor, amendment of the register is not needed. In these circumstances, a trader making a verbal notification will have satisfied the legal requirement and written confirmation of a change cannot be insisted upon.

If written confirmation is not obtained, or is not provided after a request has been made, it is recommended that the change is recorded by amending the VAT 2, for example by deleting details of the partner(s), leaving the partnership. A cross-reference to the ‘Notes’ page of EF, where details of the notification, including the date partner left and the date Department was notified, should be made.

Registration in the names of the partners

Where the registration is in the name of the partners, and the change does not result in one partner remaining as a sole proprietor, amend the register details accordingly on receipt of written confirmation.

Addition of a new partner

If a new partner is added to the registration, issue a VAT 2 to the partnership PPOB to be complete and link this to the partnership’s previous VAT 2 in the trader’s EF folder.

Where all but one partner leaves

On receipt of a verbal notification of a change of partners, where the change results in one partner remaining as a sole proprietor, written confirmation is required and normal action should be taken.

Take appropriate deregistration action in respect of the partnership and registration or reallocation action in respect of the sole proprietor.

Where no response is received to the letter

If no response has been received within 30 days of the VATREG47150 letter, a warning letter should be sent notifying the trader that, if the change is not notified in writing within 30 days, the trader will be liable to a penalty from the date the legal requirement was breached. If notification is not received within the further 30 day period, a penalty assessment letter may be issued. Please see VATCP for further details of penalty warning letters and penalty letters (External users can find this guidance at