VAT Notice 700/56: insolvency

Updated 20 July 2016

Contents

Foreword

1.   Introduction

2.   Types of insolvencies

3.   Notifications

4.   Claims

5.   Returns

6.   Deregistration

7.   Post deregistration

8.   Dividends

9.   Bankrupt continues to trade

10.     Bad debt relief

11.     Cash accounting

12.     Credit notes

13.     Crown set-off

14.     Taking Control of Goods (TCoG)/distraint

15.     Partial exemption

16.     Partnerships

17.     Law of Property Act

18.     Transfer of a Business as a Going Concern (TOGC)

19.     Retention of insolvent trader's records

20.     Submission of VAT forms

Your rights and obligations

Do you have any comments or suggestions?

Putting things right

How HMRC uses your information

Annex A VAT Return forms

Foreword

This notice cancels and replaces VAT Notice 700/56 (November 2015). Details of any changes to the previous version can be found in paragraph 1.1 of this notice.

1.Introduction

1.1 What is this notice about?

This notice explains the:

·         basic principles of our treatment of insolvent businesses

·         procedures which insolvency practitioners are asked to follow when dealing with HM Revenue and Customs (HMRC)

Although this notice details VAT procedures, it can be applied to cases where traders are involved in another indirect tax or duty administered by HMRC.

This notice has been re-issued to accommodate the following changes:

·         update of contact details at paragraph 1.4

·         clarification at paragraph 2.5 that the VAT general enquiries line should only be contacted if there is a genuine VAT enquiry, rather than to simply notify us of a process listed under paragraph 2.5

·         at paragraph 3.1, deletion of previous sentence stating that VAT 769 may be obtained by ringing the VAT general enquiries line - the VAT 769 may be downloaded from theHMRC website (paragraph 3.1 contains a link to the form)

·         at paragraph 3.4, inclusion of requirement for name of IP firm on the VAT 769

·         at paragraph 3.5, deletion of reference to question about deregistration on the VAT 769

·         at paragraph 4.4, deletion of previous sentence stating that duplicate VAT returns may be obtained by ringing the VAT general enquiries line - inclusion of replacement sentence stating that duplicate VAT returns should be requested from the appropriate insolvency team as shown at paragraph 1.4

·         at paragraph 5.8, inclusion of sentence specifying HMRC’s right to verify repayment claims

·         re-write of paragraph 6 to reflect new VAT deregistration procedure for insolvent businesses

·         at paragraph 7.5, update of contact telephone number for VAT 426 team at Woolwich

·         at paragraph 7.7, update of contact details for VAT 427 processing team

·         at paragraph 7.9, deletion of previous reference to ringing the VAT Helpline to obtain copy of form VAT 833, replaced by link to VAT 833 on HMRC website

·         at paragraph 8.1, update of address of VAT 833 team

·         at paragraphs 9.1 and 9.2, deletion of previous references to the National Insolvency Unit

·         at paragraph 13, inclusion of a general deminimus level of £250 for Crown set-off enquiries

·         at paragraph 17.3, deletion of previous sentence stating that form VAT 833 is available on request by ringing the VAT Helpline - deletion of previous reference to ‘Billpay’

·         at paragraph 20.1, update of address for VAT 427 processing team

·         under ‘Do you have any comments or suggestions?’, deletion of reference to the MARD and Insolvency Policy and Strategy Team at Liverpool, replaced by Enforcement and Insolvency Service Liverpool

1.2 Who should read this notice?

This notice is aimed at insolvency practitioners and official receivers (office holders) who are dealing with the business activities of VAT-registered traders.

1.3 Status of this notice

The reproduction of the VAT Return (form VAT 100) and final VAT Return (form VAT 193) in Annex A of this notice have the force of law.

This notice does not otherwise have the force of law, but it explains how we interpret the law on insolvency processes in relation to VAT.

1.4 Further information and advice

If you have a case specific VAT enquiry concerning an insolvent case e.g, whether a pre-insolvency return has been provided or whether set-off will apply in a particular circumstance, please quote the VAT registration number and contact the appropriate insolvency team as per the details below:

Bankruptcies/sequestrations, administrative receiverships and liquidations (excluding members voluntary liquidations)

Insolvency Claims Handling Unit (ICHU) 
Benton Park View 
Longbenton 
Newcastle 
NE98 1ZZ 

Email: insolvencyhelpdesk@hmrc.gsi.gov.uk

Company administrations and members voluntary liquidations

HM Revenue and Customs 
Enforcement and Insolvency Service (EIS) 
Durrington Bridge House 
Barrington Road 
Worthing 
BN12 4SE 

Email for company administrations: eisw.teamad@hmrc.gsi.gov.uk
Email for members voluntary liquidations: eisw.mvl.team@hmrc.gsi.gov.uk

Telephone helpline for members voluntary liquidations: 03000 577 060
Opening hours Monday to Thursday, 10.30am to 2.30pm

Trust deeds (Scotland)

HM Revenue and Customs 
Enforcement and Insolvency Service (EIS) 
Elgin House 
20 Haymarket Yards 
Edinburgh 
EH12 5WT 

Telephone helpline for trust deeds: 03000 520738
Opening hours Monday to Friday, 08.30am to 4pm

If you have a general VAT query which isn’t specific to any particular case e.g, whether a particular supply will be standard rated, zero-rated or exempt etc, you should contact VAT: general enquiries.

1.5 Voluntary Arrangement Service

The Voluntary Arrangement Service at Worthing deals with voluntary arrangements. All voluntary arrangement proposals for HMRC as well as VAT 769 notification forms for voluntary arrangements should be sent to the following address:

HM Revenue and Customs 
Voluntary Arrangement Service 
Durrington Bridge House 
Barrington Road 
Worthing 
BN12 4SE 

Email: vas@hmrc.gsi.gov.uk

2.Types of insolvencies

2.1 What is insolvency?

Insolvency occurs when individuals or businesses:

·         do not have enough assets to cover their debts

·         are unable to pay their debts when they become due

HMRC refers to the official receiver, or to the insolvency practitioner appointed over an insolvent business’s affairs, as the ‘office holder’.

Office holders are liable to account for VAT in the normal way following their appointment.

2.2 What types of insolvency are there?

There are various types of insolvency procedure into which a VAT-registered business may enter.

Insolvencies are defined in law. In this notice we have grouped them into:

·         formal insolvencies

·         business rescue procedures

·         those receiverships which we do not treat procedurally as insolvencies

Where appropriate, the date that establishes our claim in the insolvency (the relevant date) appears after the definition.

2.3 Formal insolvencies

2.3.1 Administrative receivership

An administrative receiver may be appointed to manage the affairs of a company by a secured creditor who holds a debenture agreement containing floating, or fixed and floating, charges over the whole, or substantially the whole, of a company’s assets.

Upon the appointment of the administrative receiver, the floating charges will crystallise.

The administrative receiver must treat the business assets covered by the charges in such a way as to recover the money due to the secured creditor. If the administrative receiver deems it to be in the best interests of the secured creditor, the business will continue to trade.

We take the date of the receiver’s appointment as the relevant date.

2.3.2 Bankruptcy

A bankrupt is an individual against whom the court has made a bankruptcy order.

The court can declare a person bankrupt on petition from the individual, one or more of their creditors, or the supervisor of an individual voluntary arrangement. The order indicates that the person is unable to pay their debts and, subject to certain exceptions, deprives them of their property, which can then be sold in order to pay their creditors.

HMRC takes the date of the bankruptcy order as the relevant date.

2.3.3 Sequestration

This is the bankruptcy process of an individual, or partnership (firm) in Scotland.

If the debtor presents the petition for sequestration, then we treat the date on which sequestration is awarded as the relevant date.

If the petition for sequestration is presented by a:

·         creditor

·         trustee acting under a trust deed

The court issues a citation, or warrant, to order the debtor to appear before the court within 14 days to state their case as to why sequestration shouldn’t be awarded.

If the debtor fails to appear, sequestration is awarded.

In such cases, we take the date of the original ‘warrant to cite’ as the relevant date.

2.3.4 Creditors’ voluntary liquidation

A creditors’ voluntary liquidation usually relates to an insolvent company and is commenced by a resolution of the shareholders.

A creditors’ meeting is called so that the creditors of the company may, if they wish, appoint another insolvency practitioner in place of the shareholders’ appointee.

HMRC takes the date of the extraordinary resolution as the relevant date.

2.3.5 Members voluntary liquidation

The directors of a company, or the majority of its directors, make a Declaration of Solvency. In the declaration, the directors state their opinion that the company will be able to settle its debts in full plus interest within a period not exceeding 12 months of its being placed in liquidation. The declaration must be made within the 5 weeks immediately preceding the date of the passing of the resolution for winding up.

Liquidation takes place when the resolution is passed.

We take the date of the resolution as the relevant date.

2.3.6 Compulsory winding up

The court orders a compulsory winding up as the result of the presentation of a petition by:

·         the company

·         its creditors

·         its directors

·         one or more of its shareholders

·         the Secretary of State

We take the date of the winding-up order as the relevant date.

2.3.7 Partnership winding up

The court orders a compulsory winding up as a result of the presentation of a petition by:

·         the members of the partnership

·         a creditor

We take the date of the winding up order as the relevant date.

2.3.8 Provisional liquidation

The court may appoint a provisional liquidator after the presentation of a petition for a winding up in order to protect the assets of a company before a winding up order is made.

Where a provisional liquidator has been appointed, HMRC don’t treat the case as insolvency until a winding-up order is made and a ‘permanent’ liquidator appointed.

We take the date of the appointment of the provisional liquidator as the relevant date and issue the insolvency claim to the permanent liquidator.

2.4 Business rescue procedures

2.4.1 Company administration

The court may appoint an administrator following an application by either the company, its directors or one or more of its creditors. In addition, an administrator may be appointed out of court by the:

·         company or its directors

·         holder of a qualifying floating charge

The administrator must perform his functions:

·         firstly to rescue the company

·         secondly, if that isn’t practicable, to achieve a better result for the company’s creditors as a whole than would be achieved in a winding up

·         thirdly, if the second option isn’t practicable, to do his best for the secured and preferential creditors without unnecessarily harming the interests of the creditors as a whole

HMRC takes the date of the administration order as the relevant date.

2.4.2 Partnership administration order

The court appoints an administrator following an application by the members of the partnership or by a creditor, which is intended to allow:

·         the partnership, or part of it, to survive in a restructured form

·         for the approval of a partnership voluntary arrangement

·         for a better realisation of the company’s assets than would be obtained from winding up the partnership

HMRC takes the date of the partnership administration order as the relevant date.

2.4.3 County court administration order

The court:

·         makes an order for regular payments to be made over a period of time in settlement of debts

·         administers the scheme

The scheme is only available to individuals.

HMRC takes the date of the administration order as the relevant date.

2.4.4 Deceased persons’ administration order

An order made for the administration of a deceased person’s estate.

We take the date of the administration order as the relevant date.

2.4.5 Deed of arrangement

This is a method by which an individual can arrange terms with creditors.

We take the date of execution of the deed as the relevant date.

2.4.6 Scheme of arrangement

A term normally used to describe a compromise or arrangement between a company and its creditors or members or any class of them, which may involve a scheme for the reconstruction of the company.

HMRC takes the date of the creditors’ meeting confirmed by the court order as the relevant date.

2.4.7 Scottish trust deeds

A debtor grants a deed in favour of the trustee that transfers their assets to the trustee for the benefit of creditors.

We take the date the deed is signed as the relevant date.

2.4.8 Voluntary arrangements

A voluntary arrangement provides an alternative to bankruptcy or liquidation without the attached restrictions.

Company and partnership voluntary arrangements are similar to the above. A moratorium may be sought preventing certain recovery actions in order to grant a breathing space for the business.

We take the date of the creditors’ meeting when the voluntary arrangement was approved as the relevant date.

2.5 Procedures not treated as insolvencies

2.5.1 Agricultural charge receivership

A secured creditor can appoint a receiver under the Agricultural Credits Act 1928 over the assets of a farm estate.

2.5.2 Fixed charge receivership

A receiver, or receiver and manager, is appointed by a secured creditor who holds a fixed charge over the specific assets of a business. The assets will be used for the benefit of the secured creditor.

2.5.3 Law of Property Act receivership

A lender, such as a bank, can appoint a receiver over a mortgaged property under the Law of Property Act 1925 to recover money advanced.

The receiver will usually try to arrange for the property to be sold or will be responsible for collecting rents for the mortgagee. The business may continue to trade independently of the receiver’s appointment.

2.5.4 Court appointed receivership

The court is able to appoint a receiver to collect property over which he is appointed. No property is invested in such a receiver, but his appointment acts as an injunction restraining other parties from realising assets, which the receiver has been appointed to receive.

Please do not contact the VAT Helpline unless you have a general VAT query. You shouldn’t contact the VAT Helpline simply to notify HMRC of the above appointments. Law of Property Act or Fixed Charge receivers who wish to enquire whether there is an Option to Tax on a particular property should contact the Option to Tax service.

3.Notifications

3.1 How do I notify you of insolvency?

Complete a form VAT 769 within 21 days of your appointment if you’re appointed as:

·         trustee in the bankruptcy/sequestration of a VAT-registered individual

·         liquidator of a VAT-registered company

·         receiver in the administrative receivership of a VAT-registered company

·         administrator in the administration of a VAT-registered company

Form VAT 769 should also be completed on the approval of a voluntary arrangement (see paragraph 1.5).

The information on the form allows HMRC to quantify the VAT element of our claim in the insolvency quickly and issue split VAT returns for the pre and post appointment accounting.

3.2 When is form VAT 769 not applicable?

This should be read in connection with paragraph 2.5. You shouldn’t use form VAT 769 to notify HMRC of:

·         a proposed creditors’ meeting for either a voluntary arrangement or a creditors’ voluntary liquidation

·         Law of Property Act receiverships

·         the appointment of receivers or managers under a fixed charge only

·         the appointment of receivers over the assets of a farm estate under the Agricultural Credits Act 1928

·         the appointment of a provisional liquidator

·         notification to appoint a liquidator under Section 98 of the Insolvency Act 1986

3.3 Who is responsible for the information supplied on form VAT 769?

Responsibility for ensuring that all the details supplied on the form VAT 769 are accurate, and that they’re proper to the correct VAT-registered trader, lies with the office holder appointed to take charge of the insolvent business.

3.4 How do I complete form VAT 769?

There are notes for guidance on the reverse of the form.

HMRC will be unable to process your notification unless you provide the following essential information in boxes 1 to 6 of the form:

·         VAT Registration Number of the insolvent business

·         type of insolvency, coded in accordance with the instructions on the reverse of theform VAT 769

·         relevant date for the claim (that is, the effective date of insolvency)

·         full name of the insolvent registered business

·         name and title of the appointed office holder

·         full name of firm and postal address, including postcode, of the office holder

3.5 Office holder appointed after an official receiver

If you’re an office holder appointed after an official receiver, we expect you to notify us of your appointment within 21 days and complete the essential information in boxes 1 to 6 of the form VAT 769.

Please give the name and phone number of a person to contact about the insolvency in the space provided, and sign and date the form.

You should also try to supply the following information in boxes 7 to 12:

·         reference for correspondence, or the court reference

·         the date of appointment of the office holder, if it is different from the relevant date for the claim

·         the date that trading ceased

·         whether or not a dividend is likely

·         whether or not the prospects of a dividend will be affected by litigation

However, if any of the above information isn’t available within the time limit for notification, please complete as much of the form as you can and notify us of the missing details at a later date.

3.6 Liquidators appointed after the appointment of an administrative receiver

If you’re appointed liquidator after the appointment of an administrative receiver, please don’t complete a form VAT 769 as the administrative receiver should already have completed one.

We will, however, need to be informed of who controls the company’s assets and has responsibility for rendering VAT returns.

Please provide us with this information, ensuring that you include:

·         the trader’s VAT registration number

·         the date of your appointment

·         your name and address

And send it to:

HM Revenue and Customs 
Insolvency Claims Handling Unit 
Benton Park View 
Longbenton 
Newcastle 
NE98 1ZZ 

But remember - don’t send a completed form VAT 769 in this circumstance.

3.7 Liquidator or trustee appointed after an official receiver

If you’re appointed liquidator or trustee after an official receiver, please notify HMRC of your appointment using the form VAT 769. Make sure that you fill in box 3 and box 8 to provide the relevant date for the claim and the date of your appointment as, in this instance, they will usually be different.

3.8 Advice or help

Before you fill in the form VAT 769, please read the guidance notes printed on the reverse of the form.

If you need further advice or help, please contact the appropriate HMRC office as shown in paragraphs 1.4 and 1.5 of this notice.

4.Claims

4.1 Calculation of claims

Once notified that a VAT-registered business has become insolvent, HMRC will calculate our claim based on the amount outstanding at the date on which the business became insolvent. You can obtain a more detailed breakdown of the claim from the issuing office.

4.2 Relevant date

The relevant date is the date which establishes our claim in the insolvency. The claim will include VAT up to the day before the relevant date.

Where the business continues to trade, the office holder will have responsibility for the VAT affairs of the business from the relevant date onwards. Exceptions to this are:

·         bankrupts continuing to trade

·         voluntary arrangements

·         deeds and schemes of arrangement

·         county court administration orders

4.3 Amended claims

An amended claim will be issued if there are any adjustments made to the insolvent trader’s pre-appointment VAT account which affect our original claim.

The amended claim liability will supersede that of the original claim notification.

4.4 Tax assessments

If a VAT Return has not been submitted for any VAT accounting periods falling prior to the relevant date, the tax liability for the periods may be assessed by means of a computer calculated assessment.

This type of assessment may be withdrawn once an acceptable VAT Return has been submitted. If you require a duplicate return you should contact the appropriate HMRCinsolvency team for the insolvency type concerned using the contact details contained at paragraph 1.4. HMRC reserves the right to verify the accuracy of any returns received.

Assessments relate to individual prescribed accounting periods. They’re normally issued as the result of:

·         under or over declarations of VAT discovered during an inspection of the VAT records

·         the best available means in the absence of records

·         a declaration by the trader

Each assessment line corrects the liability previously declared or assessed for the relevant accounting period.

Error correction notifications (formerly known as voluntary disclosures) by the registered trader or by the insolvency practitioner of amounts which have been under or over declared follow the same pattern.

Subject to time limits HMRC has the right to assess the tax liability for any period where a return has not been submitted or if there is evidence that tax is due.

4.5 Penalties

Part of HMRC’s claim may consist of:

·         default surcharge

·         default interest

·         penalty interest and

·         a civil penalty

4.5.1 Default surcharge

This is a penalty calculated as a percentage of the VAT due for the tax period covered by the return which remains unpaid by the due date. Surcharge can increase on every subsequent default up to a maximum of 15%.

You can find further information on default surcharge in VAT Notice 700/50: default surcharge.

4.5.2 Default interest

This may be charged on assessments or voluntary disclosures for VAT underdeclarations or overclaims. The interest will be calculated as a percentage of the underdeclaration or overclaim. It is charged from the day after the due date of the return which understates the VAT due to the date the assessment or voluntary disclosure is paid. If VAT is overpaid by us following a repayment claim interest is charged from 7 days after the date we authorised your repayment until the date the assessment to recover the overpayment is paid.

You can find further information on default interest for VAT in Notice 700/43: default interest.

Interest is also chargeable on assessments and voluntary disclosures for Air Passenger Duty, Insurance Premium Tax, Landfill Tax, Climate Change Levy and Aggregates Levy.

4.5.3 Civil penalties/criminal penalties

Civil penalties can be raised for a variety of reasons including:

·         late notification of a liability to be registered

·         inaccuracies on taxpayer’s returns or documents

·         breaches of regulations

·         dishonesty

Criminal penalties can also be raised if a criminal offence is committed. These penalties will be raised by the courts and will not be included in our insolvency claim.

4.6 Penalty interest

Penalty interest can also be charged for late payment of Landfill Tax, Climate Change Levy and Aggregates Levy returns. It is also chargeable on tax or levy assessments, penalties, interest and penalty interest in relation to Landfill Tax, Climate Change Levy and Aggregates Levy.

4.7 Proof of debt

In bankruptcies and compulsory liquidations the office holder can request a proof of debt from the Insolvency Claims Handling. You can find their address in paragraph 1.4.

5.Returns

5.1 The VAT Return

The great majority of businesses must file their returns online and pay any VAT due electronically. The only exceptions to this are businesses subject to an insolvency procedure and businesses run by practicing members of a religious society, whose beliefs prevent them from using computers.

The paper versions of the VAT Return (form VAT 100) and final VAT Return (form VAT 193) are reproduced at Annex A of this notice.

5.2 Where should I send VAT returns?

Please send all completed returns, whether they’re for pre or post insolvency periods to:

HM Revenue and Customs 
VAT Controller 
VAT Central Unit 
BX5 5AT 

You must not:

·         amend the dates

·         amend the periods

·         amend the trader’s details

·         end in photocopied returns

·         for bankrupts continuing to trade, please see paragraph 9.2

5.3 Pre-insolvency returns

The insolvent business has responsibility for submitting pre-insolvency returns. However, the office holder may submit a return for any pre-relevant period for which the trader has not rendered a return.

Please leave the return unsigned, but add the legend, ‘completed from the books and records of the company/trader’.

The final pre-insolvency return covering the period up to the relevant date will be issued automatically to the office holder. This return will not be subject to default surcharge.

5.4 Split period returns

Where the relevant date falls within a prescribed VAT accounting period for which no tax liability has been declared, VAT returns will be issued covering the immediate pre and post appointment accounting periods.

5.5 Post-insolvency returns

Returns will be issued automatically to the office holder on a monthly/quarterly basis as appropriate.

The office holder has legal responsibility for completing and submitting post-insolvency returns and accounting for any tax due, with the following exceptions:

·         voluntary arrangements

·         deeds and schemes of arrangement

·         county court administration orders

5.6 Application of penalties

5.6.1 Penalties due under VAT Act 1994

VAT default surcharge, VAT civil penalties and VAT default interest are not normally applied to post-insolvency VAT returns, except in the case of:

·         administrations

·         partnership administration orders

·         deceased persons’ administration orders

·         deeds and schemes of arrangement

·         Scottish trust deeds

·         county court administration orders

·         voluntary arrangements

5.6.2 Inaccuracy penalties due under Schedule 24 FA 2007

Inaccuracy penalties due under Schedule 24 Finance Act 2007 are applied to both pre and post insolvency VAT returns and relevant documents in all cases. FactsheetCC/FS7a provides details of the penalty for the inaccuracies regime.

5.7 Repayments

Returns submitted showing a repayment due to the business will be repaid in the name of the insolvent business, c/o the office holder.

HMRC should make the repayment within 30 days of receipt of the return, subject to verification of the declaration. Repayments will be delayed if:

·         the form VAT 769 is inaccurate

·         you have failed to notify us of the appointment of the office holder

Repayments for businesses:

·         in voluntary arrangements

·         deeds and schemes of arrangement

·         county court administration orders

Will be sent to the address of the registered business unless the trader has given written permission for the payment to be sent to the office holder.

5.8 Repayment supplement

Repayment supplement is a form of compensation paid in certain circumstances when we do not authorise payment of a legitimate claim within 30 net days of the receipt of the VAT Return.

Normally, the 30 day repayment supplement clock will start on the day that a return is received. But, if your return is received before the end of the accounting period, the clock will not start until the end of the period. This is because you’re not entitled to any input tax claimed on the return until the end of an accounting period.

All VAT repayment claims are subject to potential verification enquiries in order forHMRC to be satisfied of their validity. In addition, in the case of VAT repayment claims for pre-appointment periods, HMRC will conduct set-off enquiries to establish whether there are any pre-appointment debts owed by the insolvent taxpayer to the Crown against which the VAT repayment claim may be set-off (see paragraph 13.1 dealing with ‘Crown set-off’). The time taken to conduct such enquiries will be in addition to not count for the purpose of the 30 day repayment supplement clock referred to above. The office holder may still request repayment supplement if they believe there to have been an unreasonable delay in dealing with the VAT repayment claim.

You can find further information about repayment supplement in VAT Notice 700/58: treatment of VAT repayment returns and VAT repayment supplement.

5.9 Compliance

HMRC has the right to check the accuracy of all returns submitted and to require that the books and records of the business be made available for inspection. In certain circumstances, where it can be shown that an office holder has consistently not complied with regulations, a report may be made to the appropriate licensing authority.

6.Deregistration

6.1 What is deregistration?

Deregistration is the process by which a VAT-registered business is removed from the VAT register and the VAT registration number cancelled.

6.2 When is deregistration applicable?

A registered person who satisfies HMRC that they have ceased to make (and/or ceased to intend to make) taxable supplies is entitled to deregister from VAT from the date they ceased to make (and/or intend to make) taxable supplies or from such later date that might be agreed with HMRC.

Further information about deregistration can be found in VAT Notice 700/11: cancelling your registration.

‘Taxable supplies’ in the above context includes sales of assets. You should therefore not apply for VAT deregistration immediately upon your appointment over a business, even if that business has ceased to trade, as the VAT arising from asset sales will still need to be included on a post-appointment VAT return. The sale of assets must be evidenced by a legally valid VAT invoice and, for a VAT invoice to be legally valid, the business must be VAT registered at the point that the invoice is issued.

6.3 How to deregister

You should apply to cancel the VAT registration of the business concerned by completing a VAT 7. The completed form should be sent to the address shown at the bottom of the form.

6.4 VAT group registrations

Where a VAT group is being deregistered, forms VAT 50 and VAT 51 must be used for this purpose rather than a VAT 7.

6.5 Cancelling your registration online

You can cancel your registration online and make other changes by using the online service provided by HMRC. You can ask an agent to do this for you. As the VAT-registered person, you will still be responsible for the accuracy of the information. The online service and full terms and conditions of its use can be found on GOV.UK.

7.Post deregistration

7.1 Input tax

Post deregistration input tax may be claimed on form VAT 426: insolvent traders claim for input tax after deregistration).

This form is to be used only by office holders referred to below.

7.2 Who can use form VAT 426?

The form is available for use by:

·         trustees in bankruptcy

·         trustees in sequestration (in Scotland)

·         official receivers

·         liquidators

·         administrative receivers

7.3 Who can’t use form VAT 426?

Form VAT 426 may not be used by solvent deregistered traders, office holders in business rescue procedures and other incapacitated traders. These categories include:

·         supervisors in voluntary arrangements

·         administrators in company administrations

·         trustees appointed under a trust deed (in Scotland)

·         Law of Property Act receivers

·         receivers appointed in a partnership dispute

·         receivers appointed by a court

·         receivers appointed under the Agricultural Credits Act 1928

·         office holders appointed for a scheme of arrangement

·         administrators appointed for a deceased person’s administration order

·         liquidators in a members’ voluntary liquidation

7.4 What you can and can’t claim on the form VAT 426

You will find the basic rules about input tax VAT Notice 700: the VAT guide.

The following general rules also apply:

·         you’re entitled to claim only tax which relates to goods and services used in the making of taxable supplies (you should calculate exempt input tax in accordance with the guidance given in VAT Notice 706: partial exemption)

·         you can claim relief from VAT on only those services which, though supplied after the registration was cancelled, relate to taxable activities

·         there’s no relief from VAT on goods supplied to you after the date of deregistration or on services which are not attributable to taxable supplies

·         you must retain all invoices supporting your claim with the relevant books and records in case your claim is selected for verification

7.5 Where should I send completed form VAT 426 claims?

You should send your completed form VAT 426 claims to:

HM Revenue and Customs 
Specialist Office South 
Woolwich 
VAT 426 Processing only 
DMB490 
BX5 5AB 

The Specialist Office South above may be contacted by Telephone on: 03000 515 802.

Please provide supporting invoices for amounts claimed of £20,000 or over. Claims for amounts of £20,000 and over will be paid by Bacs so please provide Bacs details for these claims. You can expect to receive a payable order within 30 working days from the date your completed claim is received by HMRC at the above address, subject to the verification of your claim.

7.6 Verification of claims

HMRC will select some claims for verification. This may be carried out by the local VAT office that will make arrangements to visit you within 30 working days from the date the VAT 426 processing team at Woolwich receives your claim. Most verification visits will be made after we have authorised your repayment claim. However, in some instances we may decide to withhold repayment until we have completed our enquiries.

If we disallow any part of your claim, you may be held liable to bear the cost of any VAT we have disallowed.

7.7 Form VAT 427 (claim for input tax made post-deregistration relating to goods and services supplied prior to deregistration)

This is to be used in the following circumstances:

·         members voluntary liquidations

·         administrations

·         Scottish trust deeds

·         deeds or schemes of arrangement

·         voluntary arrangements

The completed form VAT 427 should be sent to the following address:

VAT2 DMB 612 
HMRC Corporate Finance 
Victoria Street 
Shipley 
BD98 8AA 

Telephone number: 03000 517 624

The criteria for reclaiming input tax on a form VAT 427 is the same as that for a form VAT 426 as outlined at paragraph 7.4.

7.8 Output tax

VAT on taxable stocks and assets remaining at the date of insolvency must be accounted for on post-appointment returns including the final return, form VAT 193. VAT must not be charged post-deregistration, since a deregistered business can’t legally issue a VAT invoice. The VAT registration will therefore be kept open until all trading has ceased and asset realisation is complete (though insolvent businesses that continue to trade may deregister voluntarily on turnover grounds if they can satisfy the conditions laid out in paragraph 3.2 of VAT Notice 700/11: cancelling your registration).

Any cases of difficulty for example, difficulty in selling a property on which there is an option to tax may be discussed with the appropriate HMRC insolvency team using the contact details in paragraph 1.4 of this notice.

Please see paragraph 17.3 for details of the method Law of Property Act receivers should use to account for output tax.

7.9 Form VAT 833

The form VAT 833 (goods sold in satisfaction of a debt) must not be used to account for output tax post-deregistration for the reason outlined in paragraph 7.8 above. However, form VAT 833 may still be completed on GOV.UK for use in the following processes:

·         deeds and schemes of arrangements

·         County Court administration orders

·         Scottish trust deeds

·         deceased persons’ administration orders

In all cases you should submit form VAT 833 to:

HMRC Banking 
VAT 833 team 
St Mungo's Road 
Cumbernauld 
G70 5TR 

8.Dividends

8.1 Declaring a dividend

If the office holder declares a dividend from an insolvent estate, cheques should be made payable to ‘HM Revenue and Customs’ and sent to:

HMRC Banking 
VAT 833 team 
St Mungo's Road 
Cumbernauld 
G70 5TR 

Please include the VAT registration number of the business concerned on the back of the cheque.

8.2 What happens when part of a claim is paid as a dividend?

When part of a claim is paid as a dividend, the claim figure on which any subsequent dividend payments are calculated isn’t reduced. The claim that is calculated at the relevant date stands, and all dividend payments must be based on that figure.

9.Bankrupt continues to trade

9.1 Who is responsible?

When trading continues after bankruptcy, the bankrupt retains responsibility for the submission and payment of VAT returns covering post-bankruptcy periods. It is therefore important that the trustee informs the ICHU (see paragraph 1.4) if the bankrupt continues to trade beyond the date of bankruptcy.

HMRC will establish the pre-bankruptcy position to allow us to lodge a claim, make a repayment to the office holder, or operate Crown set-off (see Section 13) as appropriate.

9.2 Accounting for tax in your period of office

If you have tax to account for in respect of your period of office, you must not include this tax on the business’ post-bankruptcy returns. We will issue forms to you on request to allow you to account for the tax. Completed forms should be returned to the ICHU.

10.Bad debt relief

10.1 What is bad debt relief?

If you have made supplies of goods or services to a customer and you haven’t been paid for them, you may be able to claim relief from VAT on the debts you have incurred providing you can meet all the statutory requirements of the bad debt relief scheme. You will find further information about the scheme in VAT Notice 700/18: relief from VAT on bad debt.

10.2 Claiming bad debt relief

Bad debt relief claims made for insolvent traders can be made on VAT returns in cases where the VAT registration remains open. Where the VAT registration has been cancelled, a form VAT 426 should be used. A letter scheduling the bad debt relief claim details, together with copies of the relevant invoices, must be submitted for approval.

Extra-statutory concession relieving office holders from input tax clawback provisions

An extra-statutory concession has applied from 26 November 1996 which relieves office holders/insolvent traders from the need to repay HMRC input tax where:

·         supplies were made to the insolvent trader prior to the relevant date

·         no payment has been made

·         notification that bad debt relief has been claimed by the supplier is received on or after the insolvency date

11.Cash accounting

11.1 What is cash accounting?

The Cash Accounting Scheme allows VAT-registered businesses with a turnover limit up to £1,350,000, to account for VAT on the basis of payments received and made rather than on tax invoices issued and received.

Details of how the scheme operates can be found in VAT Notice 731: cash accounting.

11.2 How does insolvency affect cash accounting?

The office holder is responsible for the Cash Accounting Scheme adjustment described in paragraph 11.3. The office holder responsible for the business may use the scheme in the post relevant period if the insolvent business was eligible to use the scheme pre-insolvency and continues to be eligible to do so. This may be appropriate in cases where trading has continued after the relevant date.

11.3 Post-insolvency cash accounting adjustment

The cash accounting regulations were amended with effect from 3 July 1997.

For businesses in:

·         administration

·         voluntary arrangements

·         deeds and schemes of arrangement

·         county court administration orders

This tax should be entered on to the VAT Return for the period immediately preceding the relevant date, and is treated as a liability arising before the insolvency.

12.Credit notes

12.1 Further information about credit notes

General guidance on credit notes can be found in VAT Notice 700: the VAT guide.

12.2 Time limit

Where a credit note evidencing a decrease in consideration is received or issued by an office holder after the relevant date, adjustments of VAT resulting from such credit notes will relate to the VAT accounting period in which the original supply was made or received.

12.3 Pre-insolvency supplies

If you issue a credit note evidencing a decrease in consideration for supplies made in a pre-insolvency VAT period, the effect is to reduce the output tax due in that period and thus to reduce our claim in the insolvency.

If you receive such a credit note which relates to supplies made in a pre-insolvency VAT period, the effect is to reduce the input tax which can be claimed in that period and so to increase our claim in the insolvency.

For:

·         bankruptcies

·         company administrations

·         administrative receiverships

·         compulsory and voluntary windings up

Any adjustments of VAT are to be related back to the period in which the original supply took place.

Since the adjustment of VAT arising from the credit note applies in the VAT accounting period in which the original supply took place, the VAT Return for the period in question will often already have been submitted once the credit note comes to light. In that event, the credit note adjustment should be declared either by letter or by means of a voluntary disclosure to the relevant office. Please provide details of the VAT element and the date of the original supply. If, however, you haven’t yet rendered a VAT Return for the period concerned and you’re intending to do so, the return must include the credit note adjustment.

12.3.1 Voluntary arrangement

In the case of a company voluntary arrangement the adjustment should be made on the normal basis, that is, in the period the adjustment takes effect in the business accounts of either the taxable person issuing the credit note or the customer receiving one.

12.3.2 Scottish trust deeds

For Scottish trust deeds credit notes should be treated on the normal basis outlined inparagraph 12.3.1.

12.3.3 Other insolvencies

Credit notes for all other types of insolvency should be accounted for on the normal basis outlined in paragraph 12.3.1.

13.Crown set-off

13.1 What is Crown set-off?

HMRC is entitled to set-off any pre-insolvency credits against pre-insolvency debt owed by the debtor in respect of other duties administered by us. We can offer any remaining credits arising from insolvent traders’ VAT repayment claims accruing before the relevant date to other government departments. This will allow other government departments to reduce or satisfy their claims against the same insolvent trader.

The credits may arise from VAT repayment claims, credits for Insurance Premium Tax, Landfill Tax or Air Passenger Duty. We will undertake such set-off wherever it is cost-effective for us to do so, this will usually mean that set-off enquiries will not be initiated for credits below £250. The balance of any credit remaining following such set-off will be repaid automatically to the insolvent estate care of the office holder or to the trader if the business is in a voluntary arrangement, deed or scheme of arrangement or county court administration order. Crown set-off will take place after all pre-relevant returns have been received and/or assessments raised and set-off.

Crown set-off will not apply if the credit is secured by a valid fixed charge on book or other debts.

14.Taking Control of Goods (TCoG)/distraint

14.1 What is TCoG/distraint?

Distraint (attachment in Scotland) is a commonly used method of recovery by taking possession of a debtor’s goods and selling them, usually at public auction, after which the proceeds are set against the debt and costs. Distraint doesn’t require the sanction of a court order. Distraint will no longer be used in England and Wales with effect from 6 April 2014 when the relevant legislation will be repealed but will continue to be used in Northern Ireland.

TCoG replaced distraint in England and Wales from 6 April 2014. TCoG is the process under which a debtor’s goods are seized and sold in settlement of outstanding costs, tax and interest. The relevant legislation is in Part 3 (‘enforcement by taking control of goods’) of the Tribunals, Courts and Enforcement Act 2007 (TCEA07) and supporting regulations. This is Ministry of Justice legislation binding on the whole bailiff industry in England and Wales.

14.2 Bankruptcies and compulsory winding up

Once a bankruptcy order/compulsory winding up order has been made, then any incomplete ‘taking control’ (England and Wales) distraint (Northern Ireland) action (that is, the goods seized haven’t been sold), may be completed by us with the authority of the trustee in bankruptcy/liquidator, or the trustee/liquidator may insist on the goods being released to him to sell subject to an undertaking provided by HMRC.

If taking control/distraint has been completed by sale within the 3 months immediately preceding the date of a bankruptcy/winding up order, the proceeds of taking control/distress may be surrendered to the trustee in bankruptcy/liquidator if the trustee/liquidator is unable to pay the preferential creditors in full from other realisations. The trustee/liquidator must satisfy HMRC that such a shortfall regarding preferential creditors exists.

Where taking control/distraint is completed by sale more than 3 months before the making of the bankruptcy/winding up order HMRC is entitled to retain the sale proceeds.

In Scotland, attachment will not be taken against a sequestrated trader for the duration of the sequestration.

14.3 Creditors’ voluntary winding up, members’ voluntary winding up, administrative receivership, voluntary arrangements and company administrations

If taking control/distraint has been completed (goods in possession of HMRC, either physically or under a Controlled Goods (England and Wales)/Walking Possession (Northern Ireland) agreement before the appointment of a liquidator, administrative receiver or administrator, then the distraint/attachment remains valid and will be maintained and may be completed (see paragraph 14.3.3).

14.3.1 Voluntary arrangements

Taking control/distraint action will normally be suspended once an interim order has been made, a moratorium granted or proposals for a voluntary arrangement have been received and a creditors meeting arranged unless there are exceptional circumstances which justify not suspending, for example evidence of fraud or lack of probity.

Where a controlled goods agreement/Walking Possession has been entered into, our support for a proposal is likely to be on terms such that the element of our claim equivalent to either the value of that claim or the agreed valuation of the controlled goods (whichever is lower) shall be a priority claim in the arrangement. Where the proposals are rejected at the creditors’ meeting HMRC will proceed to complete the seizure by sale.

14.3.2 Administrations

Once an administrator has been appointed, taking control/distraint may not be instituted or continued against the company or the property of the company except either with the:

(a) consent of the administrator or
(b) leave of the court

Although, in view of the special rights taking control/distraint gives us over the seized goods, HMRC will generally try to reach a financial settlement with the administrator without the need to seek court directions. The process of ‘binding goods’ under TCEA07 by issuing an Enforcement Notice considerably strengthens HMRC’s position in this respect.

14.3.3 Sale of controlled/distrained goods

In many cases we will agree to the office holder selling the seized goods if it is likely to be to our benefit and/or to the creditors in general. This is subject to the office holder providing us with a written undertaking to remit the proceeds of the sale of the seized goods directly to us.

We reserve the right to remove and sell controlled/distrained goods at any time.

Any money received by us for the sale of controlled/distrained goods will be set against costs and then against the earliest pre-insolvency liability, with our claim amended accordingly.

14.4 Floating charges

Where a floating charge crystallises on the appointment of an administrative receiver or some other event specified in the debenture, control/distress will still be maintained and completed if HMRC has already seized goods which are subject to the floating charge. We may choose to let the administrative receiver sell the goods, subject to an undertaking, and pass the proceeds to us (see paragraph 14.3.3 above).

15.Partial exemption

15.1 When is a business partly exempt?

If a business is registered for VAT and incurs input tax relating to exempt supplies, that business is partly exempt. This means that it may not be able to claim all the input tax it incurs and that it will normally have to use a partial exemption method to work out how much input tax can be claimed.

You can find further information about partial exemption and methods of calculation inVAT Notice 706: partial exemption.

Partial exemption requirements apply to all VAT traders including those which are insolvent or in receivership or administration. As office holder you must comply with these requirements in respect of any returns you complete for pre or post relevant VAT periods.

An insolvent business may seek approval from its local VAT office for a change of method to calculate its entitlement to input tax recovery, given the change in circumstances.HMRC will apply its normal policy, as set out in paragraph 6.11 of VAT Notice 706: partial exemption, to when any new method can apply from with the exception that the method can’t be applied to any pre-insolvency returns.

15.2 Annual adjustments for insolvent businesses that are partly exempt

Where a business is already partly exempt it may seek approval from HMRC to end its current tax year at the relevant date and to make its annual adjustment in the VAT period ending with the relevant date. Such applications should be clearly marked ‘VAT partial exemption query’ and sent to the VAT Written Enquiries Team whose address is:

HM Revenue and Customs 
VAT Written Enquiries Team 
4th Floor, Alexander House 
Victoria Avenue 
Southend-On-Sea 
Essex 
SS99 1BD 

If HMRC don’t allow approval for a change, the annual adjustment is to be made in accordance with the normal rules set out in VAT Notice 706: partial exemption.

15.3 Insolvent traders and the Capital Goods Scheme (CGS)

If the insolvent business had assets covered by the CGS (see VAT Notice 706/2: Capital Goods Scheme) then those assets pass to the office holder on insolvency. If the use of the assets changes whilst under the office holder’s control then adjustments may arise, which must be declared on returns due from the office holder.

The office holder will need to establish the following information:

·         what assets covered by the CGS are held

·         when they came into use in the business

·         how much input tax was initially incurred and deducted on them

15.3.1 Asset still used within the business

Any adjustments are likely to be modest as they will only address the time of use by the office holder and the difference between their use and that originally made by the business prior to insolvency.

If the office holder brings the company out of insolvency or sells its assets as a transfer of a business as a going concern then any CGS items will pass on to the new owners at that point.

15.3.2 Assets no longer used within the business but held for eventual sale

If the original use was taxable and the sale will be exempt then there may be substantial adjustments due. As the sale will be made by and under the direction of the office holder adjustments must be declared by them on returns that they submit. If the asset is a building then it may be possible to prevent the sale from being exempt by opting to tax (see VAT Notice 742A: opting to tax land and buildings), although this may restrict what buyers may be interested.

If the original use of the assets was partly exempt, and if the sale is to be taxable, then adjustments in the office holder’s favour may arise.

If the business is deregistered without a sale of the asset taking place then an adjustment may arise at that time.

15.4 Insolvent traders’ circumstances which may be affected by partial exemption

15.4.1 Insolvent business formerly fully taxable or treated as fully taxable continuing to trade

Where a business remains fully taxable or continues to be treated as fully taxable, the input tax on the office holder’s fees, and all other overheads, will be recoverable. Where the business carries on trading and becomes partly exempt, it will have to apply a partial exemption method in the normal way. Recovery of input tax, including that on the office holder’s fees, could be subject to restriction in accordance with the partial exemption method used.

15.4.2 Insolvent business formerly partly exempt continuing to trade

Where the business remains partly exempt, recovery of input tax, including that on the office holder’s fees, could be subject to restriction in accordance with the partial exemption method in place in the normal way. You should request a change of method from your local VAT office if, due to changing circumstances, the method in place no longer produces a fair and reasonable attribution of input tax to taxable supplies.

15.4.3 Insolvent business which was fully taxable, or formerly treated as fully taxable, ceases to trade but remains registered pending sale of assets

Where the business has ceased to trade, the principal activity will be the sale of assets. If the assets which are sold are exempt, the business may become partly exempt. Any input tax relating to the sale of the exempt assets would then need to be restricted according to a method. However, the office holder’s fees should be treated as an overhead to the business prior to insolvency and, since that was fully taxable, they’re fully recoverable subject to the separation of any third party costs.

15.4.4 Insolvent business, which was partly exempt, ceases to trade, but remains registered pending sales of assets

Where the business has ceased to trade, the principal activity will be the sale of assets. Recovery of input tax is subject to restriction in accordance with the partial exemption method which is in place in the normal way. However, the office holder’s fees should be treated as an overhead of the business prior to insolvency and, since that was partly exempt, they will be subject to restriction. The business should continue to use the method in place in the normal way. A change of method should be requested from the local VAT office if, in the light of changing circumstances, the method in place no longer produces a fair and reasonable attribution of input tax to taxable supplies.

15.4.5 Insolvent business, which has deregistered

VAT is only recoverable on services which, although supplied after the registration was cancelled, relate to former taxable supplies made by the business.

16.Partnerships

16.1 How we deal with partnerships

Where a partnership becomes insolvent, we may pursue any of the partners for any liability due.

16.2 All partners insolvent

HMRC will lodge one claim with the insolvency practitioner in the name of the partnership. This claim should stand in the joint estate and separate estates of all the insolvent partners. We should therefore be included in any dividend declared in any of the insolvent estates.

16.3 One or more partners remain solvent

Responsibility for rendering and paying returns remains with the solvent partner(s).

We may lodge a claim with the office holder of the estate of the insolvent partner for any debts accrued up to the date of insolvency.

If you have tax to account for on the administration of the insolvent estate you must not account for it on the solvent partner’s return. We will issue forms to you on request to allow you to account for the tax direct to us.

16.4 Partnership wound up but individual partners remain solvent

The office holder will be treated as the taxable person with effect from the date of the winding up. They will be responsible for rendering and paying any tax due on returns for the period after the date of winding up.

A claim will be lodged with the office holder in the name of the insolvent partnership for any liabilities due to us up to the date of winding up.

16.5 Insolvent partners with different relevant dates

HMRC will lodge individual claims in the individual estates of the partners calculated from their respective relevant dates.

17.Law of Property Act

17.1 Receivers appointed under the Law of Property Act 1925

Where a receiver is appointed under the Law of Property Act, the receiver is unable to register separately for VAT as they’re appointed under a legal charge and are deemed to be the agent of the VAT-registered business. This business retains responsibility for its own VAT registration and all taxable supplies made and expenditure incurred by either it or the receiver must be accounted for on the VAT Return for the business’ registration.

17.2 Option to tax

You should ask the VAT office which controlled the business to confirm whether an option to tax has been taken out on the land or building. You will need to supply a valid VAT registration number to obtain this information and if the business has opted to tax, any supplies of the land or building will normally be standard rated. You can find further information in VAT Notice 742A: opting to tax land and buildings.

17.3 Accounting for VAT

HMRC considers that:

Law of Property Act (LPA) Receivers making third party payments to HMRC in respect of the management of specific properties are discharging their obligations under the LPA. This obligation is limited to accounting only for the net amount that would be due from the borrower. It is therefore acceptable for an LPA Receiver to calculate that net amount by reference to any VAT credit that the borrower is entitled to claim in connection with the supply. However, as the payment made on account by the LPA Receiver is simply made on behalf of a borrower, the borrower is still obliged to submit a VAT Return stating their liability, including the credit for any input tax. In VAT account terms, the borrower must then pay the amount owed, taking into account anything already paid by the LPAReceiver.

The LPA Receiver should account for the net tax calculated by means of form VAT 833.

The LPA Receiver’s duty in relation to VAT is limited to accounting for tax received. It isn’t part of the LPA Receiver’s obligations under the LPA to obtain repayments of VAT in connection with the property nor does he have any legal right, under either the LPA or VAT legislation, to make such a claim. Thus, while HMRC accepts that the LPA Receiver can reduce the amount of VAT to be accounted for by setting off any VAT credit that the borrower is entitled to claim in respect of that supply, if this results in a repayment claim then it is the responsibility of the borrower to claim on their VAT Return.

If assets are sold, then the VAT due must be accounted for and paid to us using form VAT 833. The business’ VAT registration number should be used on sales invoices and quoted on form VAT 833. Payment may be made electronically, with the exception of card payments via Online/Phone Payment Service and online direct debit. Please use the following details:

·         electronic payment to the CITI MISC Account - SC 08-32-00 A/C 12000903

·         reference to quote CAT2 V833 and then the VAT registration number

LPA receivers can’t make a separate claim for the input tax which should properly be claimed via the trader’s VAT Return.

18.Transfer of a Business as a Going Concern (TOGC)

18.1 What are the implications of a TOGC?

There may be a TOGC if the assets of the business are transferred to a different legal entity where they continue to be used in the same type of business as that of the transferor.

18.2 How office holders may apply for a TOGC

An office holder may treat the transfer of the assets of a business as not being a supply where the business is transferred as a going concern and the transfer can meet the criteria set out in VAT Notice 700/9: transfer of a business as a going concern.

19.Retention of insolvent trader’s records

19.1 How long do I need to keep books, papers and records?

The liquidator may destroy the books, papers and records, including the VAT records, of the insolvent company 1 year after the date of dissolution of the company.

A concession has been granted to official receivers to allow them, on request and with our approval, to destroy the books and records of a company after 6 months.

Normal rules for retention of records apply to other insolvencies.

20.Submission of VAT forms

20.1 Where do I send VAT forms?

VAT 100 
HM Revenue and Customs 
VAT Controller 
VAT Central Unit 
BX5 5AT 

VAT 193 
HM Revenue and Customs 
VAT Controller 
VAT Central Unit 
BX5 5AT 

VAT 426 
HM Revenue and Customs 
Specialist Office South 
Woolwich 
VAT 426 Processing only 
DMB490 
BX5 5AB 

VAT 427 
VAT2 DMB 612 
HMRC Corporate Finance 
Victoria Street 
Shipley 
BD98 8AA 

VAT 769 for company administrations and members voluntary liquidations forms

HM Revenue and Customs 
Enforcement and Insolvency Service 
Durrington Bridge House 
Barrington Road 
Worthing 
BN12 4SE 

VAT 769 for bankruptcies/sequestrations, trust deeds, administrative receiverships and liquidations (excluding members voluntary liquidations)

HM Revenue and Customs 
Insolvency Claims Handling Unit 
Benton Park View 
Longbenton 
Newcastle 
NE98 1ZZ 

Your rights and obligations

For an explanation of what you can expect from HMRC and what HMRC expects from you, read Your Charter.

Do you have any comments or suggestions?

If you have any comments or suggestions to make about this notice, please write to:

HM Revenue and Customs 
Enforcement and Insolvency Service Liverpool 
6th Floor 
Regian House 
Liverpool 
L74 1AD 

Please note this address is not for general enquiries.

For your general enquiries please call our Helpline on Telephone: 0300 200 3700.

Putting things right

If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right.

If you’re still unhappy, find out how to complain to HMRC.

How HMRC uses your information

HMRC is a Data Controller under the Data Protection Act 1998. HMRC holds information for the purposes specified in its notification to the Information Commissioner, including the assessment and collection of tax and duties, the payment of benefits and the prevention and detection of crime, and may use this information for any of them.

HMRC may get information about you from others, or may give information to them. If it does, it will only be as the law permits to:

·         check the accuracy of information

·         prevent or detect crime

·         protect public funds

HMRC may check information it receives about you with what is already in its records. This can include information provided by you, as well as by others, such as other government departments or agencies and overseas tax and customs authorities. HMRCwill not give information to anyone outside the organisation unless the law permits it to do so. For more information read the guidance on data protection.

Annex A VAT Return forms

The forms in this Annex are reproduced for information only, and shouldn’t be used for the submission of returns. If you’re entitled to file a paper return, we will send you one.

This is the VAT Return (VAT 100). This form is published by the Commissioners under Regulation 25A(9) of the VAT Regulations 1995.

This is the VAT final return (VAT 193). This form is published by the Commissioners under Regulation 25A(9) of the VAT Regulations 1995.