Vat - Bailiff Letter

PROCESSJIGSAW · Jul 5, 2010

I have ltd company and have decided to cease trading and let HMRC put me into liquidation. I also when registered did this as sole trader by mistake, in addition I am going personally bankrupt as have negative equity in my home.

have letter today from VAT saying broken arrangement and 10 days to pay or will seize goods.

can they take goods if they have not taken me to court

Also can i add my vat to my bankrupcy with it being sole trader

any advice appreciated

appreciate advice

Scalloway · Jul 5, 2010

They would have to get a court order to seize goods.

David Griffiths · Jul 6, 2010

Scalloway said:
They would have to get a court order to seize goods.

I'm not at all sure that is correct. Are you basing that comment on the position relating to bailiffs in general or HMRC specifically

HMRC have wide powers to levy distraint, and I don't believe that a court order is required in many cases.

If the VAT debt is the company's then they would not be able to remove personal goods. If it's a personal debt, then the situation is likely to be different. I'd suggest that proper advice is essential.

Scalloway · Jul 6, 2010

See this thread from Accounting Web

http://www.accountingweb.co.uk/anyanswers/distraint-notice-can-hmrc-really-do

HMRC can serve a distraint notice - but it has no legal standing and your client can legally ignore it.
Similarly they can levy distraint by taking his goods - BUT - only if he invites them into his premises and allows them to do so, they cannot force an entry. They need a court order to do that.
HMRC have no more rights than you or I when it comes to obtaining payment even if they like to think they have.

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Vat - Bailiff Letter

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