Compnay status not changed to Limited...

[linda139]

Our company changed to limited in 2003, our accountant at that time did all the paperwork including (we believed) notifying the HMRC of the change of status. We had a VAT inspection in June 2008 where the inspector told us the name had not been changed and we had to do this. He took a letterhead away with him and told us he could do it back at the office. He then wrote back and told us he couldn't do it and we had to write to HMRC in Grimsby which we did. We stopped trading two months later and never thought any more of it until hubby was handed a charge for payment for £16000 owed in VAT from 2008. The name has still not been changed. Can they hold him personally responsible for the VAT owed even though it was a limited company for 5 years?

 

[hbcraen]

You say you changed a company to limited. What was it before, an LLP or a partnership. Cannot understand that you thought it was a limited company for five years when no accounts or returns had been filed. Can assist but need more information

 

[linda139]

sorry, he went from sole trader to limited company. Accounts were filed, PAYE was changed but VAT wasn't for whatever reason. Thanks for any help.

 

[Bob]

Sorry bot not quite clear where the figure of £16K VAT owing has come from. Do you agree that this is the amount of VAT outstanding or is it based on estimated assessments from HMRC due to non-submission of returns?

Is your query just whether it is due from your husband or the company?

Was the company liquidated or just struck off?

 

[linda139]

The amount was due when the company stopped trading, we had very little debt otherwise (apart from an overdraft which we paid off). The question is can they hold my husband liable because the change of status was not (according to them) notified? The company has not been struck off so far although we have had numerous letters telling us they are going to strike it off. It is not liquidated because we can't afford to do it and were assuming HMRC would do it eventually but they are coming after him instead.

 

[Bob]

Sorry Linda but this is not a situation that I have come across before. Effectively, your accountant was probably negligent in that he should have ensured that you completed a VAT 1 to register the company and a VAT 68 to retain the VAT registration number from the sole trader. Had you done this, there should not have been a problem

Effectively, your husband has been completing VAT returns as a sole trader and, not surprisingly, HMRC are now saying that as he completed the forms showing that he personally owed the money, would he please pay it

Probably worth having an initial chat with someone like Robert Killington http://vatark.co.uk/welcome-to-the-vat-advice-website/about/ who specialises in VAT advice

Hope this helps. Good luck