VAT invoice 7 years after ltd company dissolved

[Gary71]

My limited company was dissolved in 2015 using the "spongebob plan".

I do not believe any VAT was owed at the closing of business.

Today, nearly 7 years after dissolving the company, I have received a bill in the name of the dissolved company from HMRC for VAT of £5654 (an estimated amount due) for the quarter April to June 2022, claiming they have not received return for this quarter.

Why would this appear now, 7 years after ceasing trading - no VAT returns have been submitted over the last 7 years, with never any query from HMRC raised as to why.

I'm thinking maybe I inadvertently forgot to formally close the VAT account at the time of business closure?

How should I deal with this?

I'm wondering what of the following options to take

1) ignore as, technically the legal entity the bill is addressed to (the dissolved ltd co) no longer exists and so presumably I cannot act in the capacity of director for a company that no longer exists?

2) return letter as "no longer at this address", ditto any further correspondence - return unopened as "no longer at this address"

3) Write to them that I am former director, stating that the company has not traded since 2014 and has been dissolved since 2015. Staying the facts as they stand. But is this likely to open any unwanted can of worms?


Any help appreciated


Thanks.

 

[Paul Norman]

Personally, I would take option 2.

I am not legally qualified in these matters, but it remains true that the bill is somewhere between a try on by the HMRC and a computer gliche. Either way, you clearly do not owe this money.

 

[ChrisCallaghan]

@Gary71

Just to be on the safe side, I'd suggest doing a Companies House search for your old company, just to make sure that HMRC have not reinstated your company.

Assuming your company is still dissolved, I would go with your option 2:

2) return letter as "no longer at this address", ditto any further correspondence - return unopened as "no longer at this address"

As Paul has already mentioned, if your company is dissolved then the debt is no longer enforceable.

 

[Gary71]

@Gary71

Just to be on the safe side, I'd suggest doing a Companies House search for your old company, just to make sure that HMRC have not reinstated your company.

Assuming your company is still dissolved, I would go with your option 2:



As Paul has already mentioned, if your company is dissolved then the debt is no longer enforceable.

Thanks. No, the company has not be reinstated - checked earlier.
There is no debt to VAT - the £5.5k they ask for is an "assessment" in the absence of any returns being submitted for the last 3 month period.

 

[ChrisCallaghan]

There is no debt to VAT - the £5.5k they ask for is an "assessment" in the absence of any returns being submitted for the last 3 month period.

Then it is doubly not owed!

All the more reason to go with your 2nd option and any other correspondence you receive concerning your dissolved company.

 

[Gary71]

Thanks. No, the company has not be reinstated - checked earlier.
There is no debt to VAT - the £5.5k they ask for is an "assessment" in the absence of any returns being submitted for the last 3 month period.

Thanks.

Just can't fathom why they would do this in current 3 month period.
At least 28x 3 month periods have passed since we ceased trading in 2015, yet no "assessments" for non-submission of quarterly returns during that time.
Computer glitch as Paul suggested perhaps?

 

[NicoJ]

There is an anomaly in the HMRC where old returns and registrations are seemingly being picked up by the new system.

I would not ignore it so neither 1 nor 2. Give them a call and tell them the company no longer exists and to update the record at their side.

 

[DontAsk]

Perhaps it's related to the start of MTD for all VAT returns.

 

[MrGerbil]

Option 2). HMRC can do nothing without restoring the company to the register, and they may have no grounds for applying for that. In the unlikely event that happens, deal with it then.

 

[Gary71]

Option 2). HMRC can do nothing without restoring the company to the register, and they may have no grounds for applying for that. In the unlikely event that happens, deal with it then.

Thanks. What kind of grounds would they need to apply for restoring the company to register?

 

[MrGerbil]

Thanks. What kind of grounds would they need to apply for restoring the company to register?

Come to think of it, they have no possible grounds, as the application must be made within six years of the strike-off, and they are out of time. They can't do anything.

 

[ChrisCallaghan]

Come to think of it, they have no possible grounds, as the application must be made within six years of the strike-off, and they are out of time. They can't do anything.

I'm not 100% sure that's correct. The 6 year rule refers to Statute Barred and HMRC do are not subject to this.

That being said, I think it is highly highly unlikely that HMRC would reinstate in cases like this. Usually they only reinstate to the wind up a company, to get into compulsory liquidation. And this usually only happens if there are clear and obvious assets to go after. They used to also do this if they suspected there was director misconduct, but with the new powers granted to the Insolvency Service to investigate directors of dissolved companies, this is not really an issue anymore.

@Gary71 I wouldn't worry about your company being re-instated. In the highly unlikely event that HMRC did go down this route, it would be with a view to wind up your company. And then you can refer back to SpongeBob's guide.

Link to the guide below:

CLOSING A LIMITED COMPANY WTH INSUFFICIENT FUNDS WITH WHICH TO PAY AN INSOLVENCY PRACTITIONER

CLOSING AN INSOLVENT LIMITED COMPANY WITH INSUFFICIENT FUNDS WITH WHICH TO PAY AN INSOLVENCY PRACTITIONER If a company is unable to carry on trading due to becoming insolvent the standard procedure for closing it down is for the directors to appoint an Insolvency Practitioner to liquidate it...

www.ukbusinessforums.co.uk

 

[SIRBF]

Hi Gary, I look like I am in a similar position but for a smaller amount. Was the problem solved?

 

[Newchodge]

Hi Gary, I look like I am in a similar position but for a smaller amount. Was the problem solved?

The post is over 3 years old and Gary71 does not appear to be a current member. I suggest you start your own thread to get advice from IPs on here.

 

[Newchodge]

Ancient thread, now closed.