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.
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