what is the fine if I sell a company and do not deregister for vat
I would be very grateful as if someone can help to answer my question.
I will explain the whole story:
I had a ltd company, which I was using only to buy and sell things through the ebay. Then, my friend was selling Brazilian food from a major supplier in UK to shops.
He told me that it was a good business. Therefore I called a company in Brazil, which could be my supplier to do the same business.
So to be able to import from Brazil I needed to register for VAT, otherwise I could not import.
So I decided to register for VAT, but due that it took so long that I lost the deal in Brazil, so I gave up the idea and decided to just continue with my online sales.
But due that I was a VAT registered and my turnover was very small I would make no profit selling online if I had to pay VAT. So then, I registered another company in my name and decided to keep the old one open in the case that another deal to import appear.
Well after sometime I decided that I had no reason to keep the VAT registered company open and I commented to my neighbour, which is an accountant that I was thinking to shut down the VAT registered company as it was not needed anymore.
Then, he told me that it was no reason to shut it down. He had a client that was interested in buy it. I asked him if it was legal and he replied YES. Therefore I agreed on transfer the company to his client and we signed the whole paperwork and the company was legally transferred to his client.
When we signed the papaerwork I asked him if we need to do anything else, such as inform the companies house, HMRC, etc.
He said that it was all done and that I had nothing to worry about anymore. But it seems that he never informed the HMRC that the company had a new owner.
Well now is when my worries began.
One day a Higher Officer from HMRC was looking for me and therefore he found me.
He asked me about some alcohol import, warehouse, etc...
My answer to him was that I never deal with alcohol and that I did sold the company months before.
Therefore I provided all of the domentantion such as the companies house, agreements, to prove that I had nothing to do regarding his issues.
After I provided the documentation, he never called me again and that was all.
The reason that I am still worried is that they still investigating the issues regarding to the VAT of the company that I sold due that they cannot contact or find the new owner.
Therefore I still receiving letters from the company that I sold and as well they still sending copy letters to other address that they believe they new owners are.
So now, another letter arrived again on my address asking to pay about £281.000 pounds for VAT transactions that the new owners have done.
Finally, my worries is that as the accountant that found the buyers never filled the VAT 68 form or the VAT 07 form when I transferred the company to the new owners.
As well it looks like a scam for me and that they did all of this in purpose.
Please can anyone advise me in what to do or if I need to do anything as the company is not mine and the letters is not arriving in my name and as well all of the transactions that they found was after I have sold the company.
Another question, do I get any fine for not have filed one of the above forms?
Kind regards and i hope anyone can reply to this question as I am not getting any sleep.
- Any Scottish members out there? 10,414 385
- P11D Query 168 5
- Investor wants shares. How does that work? 157 6
- Should he transfer the Van into the company ? 147 1
- How can customer service quality vary between the basic pension firms? 100 1
- where has the honest passion to help gone..??? 1,258 24
- What is the role of an accountant? 516 14
- Why Shoebuy Coupon Shopping Made Easy With These Expert Tips? 267 7
- 100% Xero practice 2,281 42
- More stupid generic notices from HMRC on RTI 129 1
- Difference of Sales Invoices and Bank receipts for Sales 178 6
- VAT registration pre-incorporation- wait for TOGC or treat as sale? 112 1
- Scottish but not UK 329 9
- Pension Contributions Relief 292 10
- A question for the payroll-only bureau's out there 263 1
- Out of Date Returns, CIS and Determination 108 3
- Shutting down a company with creditors 1,327 25
- Company Accounts 445 8
- QuickBooks - Separating expenses from purchases 110 2
- Lexis Nexis 3 Month Cancellation Notice 301 7
- Raiders of the Lost Tax File 1,221
- Chartered Accountant in County Down N.Ireland 430
- National Insurance 332
- IPP (International Pension Plan) income 328
- Non Resident 254
- Unnecessary S9A Enquiries 250
- Cass 5 FCA Client Money Software recomendation 246
- Franchise income and costs 219
- Tax on interest received from insurance company 154
- Hands on experience of Digita 153