Insolvency and your VAT

If you or your business becomes bankrupt or insolvent, your insolvency practitioner will usually cancel your VAT registration and organise payment of your VAT.

HM Revenue and Customs (HMRC) will work out your final VAT bill based on what you owe up to the day before insolvency.

They바카라 사이트™ll send a paper version of the VAT Return - this can바카라 사이트™t be completed using your online VAT account. It must not be signed, instead you or the insolvency practitioner should write:

바카라 사이트˜Completed from the books and records of [name of the company/trader].바카라 사이트™

Exceptions

You바카라 사이트™re still responsible for your VAT if you:

• are declared bankrupt and continue to trade
• set up a voluntary arrangement to pay off your debts (sometimes known as a 바카라 사이트˜trust deed바카라 사이트™ in Scotland)

If you set up a voluntary arrangement, HMRC will send you 2 paper VAT Returns. These are for the following periods:

• your current VAT period up to the day before the arrangement
• the date of the arrangement up to the end of your next VAT period

After this, you can continue to use your online VAT account to send your VAT Returns.

You must send any VAT Returns that weren바카라 사이트™t done before you became insolvent to the HMRC VAT Controller. Your insolvency practitioner may do this for you.