Vat inspection of struck off company

[Bellab12]

Hi, I wonder if you could help me.
We have wound out Ltd company down and as of the end of April it will be dissolved with companies house (gazette notice has been published).
Hmrc contacted us prior to our company being wound down to ask to do a vat inspection (new company and only 2 vat returns submitted).i am due to telephone them to arrange an appointment.
My question is do we need to allow this inspection to take place? As if there is no Ltd company existing anymore then nothing to inspect and any under/over payment will be then null and void, is this correct? I just want to know whether to tell them that I won't be argreeing to an inspection or do I need to arrange one. To be honest I don't even have all of the paperwork any longer as once we knew we were ceasing to trade I binned a lot of the paperwork.
Any help you could provide would be greatly appreciated.
Many thanks,

 

[Scalloway]

Has the company actually been dissolved or are you waiting for confirmation?

 

[Bellab12]

Hi,
It's in the process, the notification for striking off has been published. I have been told it will be struck off on the 28th April. Thanks

 

[Bellab12]

We havent dissolved by way off liquidation but simply striking off the business from co house and ceasing to trade. We don't owe anyone any money and didn't have the funds to appoint a liquidator

 

[ADW]

They can inspect a few years later as far as I am aware.

Have you done the vat correctly? If so it should not take long. If it is clear you have made an effort to keep it correct they will move on asap. We're both returns paying them and not rebates?

 

[Bellab12]

First one way a rebate as purchased a company van and reclaimed the vat paid but the second a repayment

 

[Bellab12]

It just seems hassle for something which is now null and void and if they find they owe us they can't pay us as no longer trading and vice verse. Also the lack of paperwork so not much to inspect on that side

 

[14Steve14]

Dont you have to keep VAT records and other stuff for something like 6 years, or can it just be disposed off if a company is closed. Just a bit of a learning question really.

 

[ADW]

Not overly surprised they want to have a look. First submission a rebate after a large purchase then only one more before shutting the books.

 

[Bellab12]

They asked for the inspection before they knew we were winding down so they don't want them inspect due to us winding down. I just want to know whether I need to comply with this or if I can just say the company has ceased trading. Whether they petition to have the company reinstated or not it doesn't affect the fact that there's little paperwork and the company has ceased

 

[ADW]

Yes is the answer. Deciding if you want a vat inspection is not optional. They might decide otherwise now you have wound down but this would be their decision not yours.

 

[STDFR33]

They asked for the inspection before they knew we were winding down so they don't want them inspect due to us winding down. I just want to know whether I need to comply with this or if I can just say the company has ceased trading. Whether they petition to have the company reinstated or not it doesn't affect the fact that there's little paperwork and the company has ceased

It doesn't matter I it has ceased trading. They can undertake a VAT inspection.

Probably a good time for them to do it, before the company is struck off.

 

[Jenni384]

. To be honest I don't even have all of the paperwork any longer as once we knew we were ceasing to trade I binned a lot of the paperwork.
,

Honestly, this wasn't a good move. You should still have kept your recods, especially as your company is still live.

And no, you can't object to the VAT inspection. You can tell them the company has ceased trading, and that you haven't got the paperwork any more, but they will still come. Sorry!

 

[Bellab12]

That's fine, if they still want to inspect, bit of a pain but I've no objections to them doing it if they insist but where do I stand regards hardly having any paperwork any longer. What will happen regarding this? As the company is ceased to trade and has no assets or liabilities (unless vat find some which I doubt as all done correctly)

 

[StevensOnln1]

If you can provide proof of the VAT you've reclaimed (i.e. invoices or VAT receipts) the inspector could disallow your VAT input claim for those items. If you've reclaimed VAT on purchasing a van, that will probably be the main thing they will be looking at. What happened to the van after the company ceased trading?

 

[Bellab12]

We still have the van but it's on hp so we don't own it.he uses it for work

 

[StevensOnln1]

Who will be the legal owner of the van once the finance payments are finished?

 

[ADW]

I would speak to your accountant as it sounds as if you are going to get quite a few awkward questions. It might cost you now but could likely save you in the longterm. No paperwork is never good as they need to have proof of purchase and that they were from vat registered companies. They don't like proformas and confirmation of purchase receipts is what I learnt back several years ago. I had most in place with correct invoices showing vat numbers so they told me to correct the few bits and pieces such as the above. It all happened in a morning as we had everything ready and pretty much as it should be. I think you will struggle to have it so easy unless you rectify some of the issues beforehand. If they can see you made an effort and the main payments are legit then they might not go any further as it is being wound down. If you cannot show them much proof and depending on the amount of the vat returns they could get quite nosey. Many people have been caught abusing vat so I would make every effort to show them you have kept it above board.

 

[Bellab12]

My husband will be the legal owner after the 4 1/2 years

 

[StevensOnln1]

If the company was never going to own the van then it's unlikely that the VAT reclaim for it would be allowable.

 

[Bellab12]

Where do we stand with this then as if this is the case then obviously we have been overpaid vat or reclaimed more than we should. The company as previously mentioned has ceased trading and will be struck off in a matter of weeks and we have no assets to take personal or business wise and live in rented accomodation

 

[STDFR33]

Where do we stand with this then as if this is the case then obviously we have been overpaid vat or reclaimed more than we should. The company as previously mentioned has ceased trading and will be struck off in a matter of weeks and we have no assets to take personal or business wise and live in rented accomodation

If you have underpaid VAT, you can arrange a payment plan with HMRC.

 

[Bellab12]

But the business is no longer trading and has no money to repay them-hence the reason for ceasing to trade. So we have nothing to give them personally or otherwise

 

[DontAsk]

If you committed VAT fraud (claiming for the van that is a personal purchase) then I would assume you can be held personally liable.

 

[Scalloway]

HMRC have the right to object to dissolution of your company owes them money.

 

[Bellab12]

But personally liable or not we literally have nothing they can take. No savings, rented accomodation and no business

 

[STDFR33]

But personally liable or not we literally have nothing they can take. No savings, rented accomodation and no business

A van.

 

[DontAsk]

So how are you keeping up the payments on the van?

 

[Bellab12]

My usbands working now but not for himself anymore. They can't take the van as it's not ours it belongs to the ho company

 

[DontAsk]

So you have income sufficient to at least pay for the van and rent, rather than

we literally have nothing they can take

 

[Bellab12]

Housing benefit pay our rent and if the take the van or money we use to pay for the van my husband can't work so well have no money for food etc

 

[ADW]

You need some form of professional advice. Had you ever used an accountant for the Ltd company in question? Who worked on and how were vat returns prepared? Were any accounts delivered to companies house?

 

[Bellab12]

Hi, no I did them myself. We were only trading for 7 months so no accounts were due

 

[Jenni384]

If the company was never going to own the van then it's unlikely that the VAT reclaim for it would be allowable.

Agreed.

 

[Mutley200]

They probably want to check that you dealt with your VAT de-registration correctly, i.e. valued your assets at de-registration (specifically the van) and declared any VAT due. Do you remember doing this? In my opinion if you try and refuse the inspection then HMRC are likely to block the striking off process and inspect anyway. My advice would be to arrange the inspection, and in the menatime talk to you accountant to ensure the VAT de-registration was dealt with correctly. And you should retain all your accounting records for 6 years, regardless of whether or not you have ceased trading.