Outstanding VAT

[Steve C]

We are in the process of closing down our business as we both have other jobs now. We have de-registered for VAT and made our final payment to HMRC, but have just today, received a letter from them for £1,270 of outstanding VAT.
I submit the VAT electronically, and noticed this amount some time ago, but have never been chased by HMRC nor had any interest or penalties issued because of it. I have submitted several returns and made several payments since first noticing this.
I have no record of having paid this amount (unlike all the other payments). The business has no assets or cash in the bank, the bank account has been closed.
Can somebody tell me where we would stand with regards to this, and the best way of dealing with the matter.
Many thanks

 

[Scalloway]

Was your business a limited company?

 

[Steve C]

Sorry, yes, it's a Ltd co.

 

[Scalloway]

If you are planning to have the company dissolved you have the option of carrying on. You need to inform HMRC of this. They may object but if they take no further action Companies House will eventually allow the dissolution.

Or you could go back through your records and see if you can find out if the discrepancy is your fault. If you have distributed too much money to the shareholders then I would think they shoud pay it back.