Hi
I have a limited company client which has recently suffered a catastrophic fire. The business has now ceased and it will take at least 12 months to restart trading if the directors want to do this. The company turnover was in the region of £2.5m.
My question is should I notify the revenue and vat of the situation ? as the next VAT return is will be almost nil. As I suspect this may raise alarm bells at the HMRC and I wish to avoid unnecessary meetings etc.
Thanks
Replies (1)
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Will they be zero ?
I would pre-warn them that there is not likely to be any trading, and why. That said,presumably there wil be some element of uninsured stock and equipment to write off which may generate losses to be carried forward. Potentially there may also be VAT to reclaim on costs incurred whilst rebuilding the business.