If you or your business becomes bankrupt or insolvent, your insolvency practitioner will usually cancel your VAT registration and organize payment of your VAT.
HM Revenue and Customs (HMRC) will work out your final VAT bill based on what you owe up to the day before insolvency.
They’ll send a paper version of the VAT Return – this can’t be completed using your online VAT account. It must not be signed, instead you or the insolvency practitioner should write:
Completed from the books and records of [name of the company/trader].
You’re still responsible for your VAT if you:
If you set up a voluntary arrangement, HMRC will send you 2 paper VAT Returns. These are for the following periods:
After this, you can continue to use your online VAT account to send your VAT Returns.
You must send any VAT Returns that weren’t done before you became insolvent to the HMRC VAT Controller. We at Benedict Mackenzie may do this for you.