Receivers and VAT
Produced in partnership with John Baldry of Temple Tax Chambers
Receivers and VAT

The following Restructuring & Insolvency guidance note Produced in partnership with John Baldry of Temple Tax Chambers provides comprehensive and up to date legal information covering:

  • Receivers and VAT
  • VAT issues for receivers
  • Is there any VAT to account for?
  • Accounting for VAT
  • Accounting for VAT—particular rules for sale proceeds
  • Time of supply
  • Recovery of VAT on costs by mortgagees (including mortgagees in possession)

FORTHCOMING CHANGES relating to insolvency and tax: Finance Bill 2019–20 introduces provisions where:

  1. HMRC becomes a secondary preferential unsecured creditor (moving up from a non-preferential unsecured creditor) in respect of the following taxes (and regardless of when the tax debt was incurred): income tax, employee National Insurance contributions and student loan repayments collected through PAYE and construction industry scheme deductions and VAT and any penalties or interest arising from such taxes. Following the March 2020 budget, this applies to corporate insolvencies commencing from 1 December 2020, rather than from 6 April 2020 as originally announced (for more information, see News Analyses: Draft Finance Bill 2019-20—changes to protect tax in insolvency with HMRC to become preferential creditor and Draft Finance Bill 2019–20—Tax analysis—Changes to protect tax in insolvency—HMRC to become preferential creditor), and

  2. with effect for tax periods ending, and to facilitation penalties determined and issued, on or after the date of Royal Assent, HMRC may issue joint liability notices to make directors and other persons involved in tax avoidance, evasion or repeated corporate insolvencies jointly and severally liable for the tax liabilities of a company (or to make members or shadow members jointly liable for the tax liabilities of a limited liability partnership (LLP)) where the company (or LLP) is subject to, or there is a serious possibility of it