If a creditor claims inclusive of value added tax (VAT) on their proof of debt, can the office holder compel them to reclaim their VAT and only admit claim net of VAT or must the office holder accept their decision not to reclaim VAT?

Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 14.4 deals with a creditor's Proof of debt. It provides that a creditor's proof must include, among other information, the total amount of the claim, including value added tax (VAT), as at the date of the insolvency order. IR 2016, SI 2016/1024, r 14.4 is reflected in paragraph 16.64 of the Insolvency Service's Technical Manual.

Assuming that a liquidation has occurred, HMRC may treat as a Taxable person in its own right any person carrying on the business of the company in liquidation. The liquidator has 21 days from beginning to carry on the company's business to notify HMRC of that fact and of the date on which the company went into liquidation. The provisions