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

The following Restructuring & Insolvency practice 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?
  • Option to tax
  • Transfer of business as a going concern
  • Accounting for VAT
  • Legislation and case law
  • VAT Notice 700/56: insolvency
  • Accounting for VAT—particular rules for sale proceeds
  • Time of supply
  • More...

Receivers and VAT

FORTHCOMING CHANGES relating to insolvency and tax: Finance Act 2020 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. 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: Publication of Finance Bill 2020 and consultations—Legislation published in draft on 11 July 2019, 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

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