Produced by Tolley
  • 21 Feb 2022 11:22

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Insolvency ― overview
  • Insolvency ― introduction
  • Insolvency ― responsibility for an insolvent business’ VAT affairs
  • Insolvency ― VAT notification requirements
  • Insolvency ― points to consider when administering an insolvent business
  • Practical points ― insolvency

Insolvency ― overview

This guidance note provides an overview of the VAT implications of insolvency.

The note does not cover details of HMRC’s claim for VAT in an insolvency, which can be found in Notice 700/56 and De Voil Indirect Tax Service V5.187.

Insolvency ― introduction

Broadly, a business becomes insolvent when it doesn’t have enough assets to cover its debts or is unable to pay those debts (although in practice, there are a variety of types of insolvency). At this point, an official receiver or an insolvency practitioner may be appointed to take over the business’ affairs. In this context, HMRC will refer to the person taking over the business’ affairs as the ‘office-holder’.

Important VAT implications can follow

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