A business becomes insolvent when it has insufficient assets to cover its debts, or is unable to pay debts as they fall due. In such cases, the official receiver or an insolvency practitioner may be appointed to handle the affairs of the business.
VAT debts in insolvency, etc; person carrying on the business
If a taxable person becomes 'bankrupt or incapacitated', HMRC may treat any person carrying on the business as a taxable person from the date of the bankruptcy or incapacity until either some other person is registered in respect of the taxable supplies made (or intended to be made) by that taxable person or the incapacity ceases1. Any person carrying on the business must notify HMRC in writing within 21 days of2:
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•ÌýÌýÌýÌý the nature of any incapacity and the date on which it began, and
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•ÌýÌýÌýÌý the date of any bankruptcy order
The VAT provisions apply to any person treated as carrying on the business as though he were a registered
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Web page updated on 26 Aug 2024 07:39