Company being dissolved, when to deregister vat?

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A company is currently being dissolved, it's just gone in the first gazette.  Just wondered when should they deregister from vat?  They don't know what to put as the ceased trading date to cancel it.  They've got a few items in April to go on a return ending this month.  Should they wait till the company is completely off companies house so they then have a ceased trading date? They've not sold anything since 18th April so should they have deregistered then? 

Replies (15)

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Caroline
By accountantccole
13th Jun 2024 07:11

How is it being struck off? (What mechanism?)
https://www.gov.uk/closing-a-limited-company
If you are striking off yourself, surely the 3 months since trading hasn't elapsed yet?
https://www.gov.uk/strike-off-your-company-from-companies-register.
I would use 18/4 for VAT

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Replying to accountantccole:
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By Suffolker85
13th Jun 2024 07:33

Thank you for your reply. All they have said is they’ve got a company involved to dissolve the company. They’ve paid their suppliers but can’t afford to pay the tax bill in July.
Regarding the VAT deregistering they wont be able to enter a retrospective date will they?

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JCACE
By jcace
13th Jun 2024 07:37

Per HMRC:
You must cancel your registration if you’re no longer eligible to be VAT registered. For example:
you stop trading or making VAT taxable supplies

I can see no value in delaying. Bear in mind also that once the company is dissolved, it no longer exists so any assets at the date of dissolution (eg bank account balances) then pass to the Crown.

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Replying to jcace:
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By Suffolker85
13th Jun 2024 07:47

Thank you for your reply. They won’t be able to enter the 18th April as the ceased trading date now will they?

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Replying to Suffolker85:
By Ruddles
13th Jun 2024 08:06

Why not? If, as a matter of fact, the company ceased to make taxable supplies on 18 April then that is the date that should be reported. If there are consequences for failure to de register when they should have done, tough.

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Replying to Suffolker85:
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By rmillaree
13th Jun 2024 09:56

if they have applied to dissolve the company they almost certainly should not have made that application if they traded as recently as mid april

https://www.gov.uk/government/publications/company-strike-off-dissolutio...

2. When a company cannot apply to be struck off the register

For example, the company may not make an application for voluntary strike off if, at any time in the last 3 months, it has:

traded or otherwise carried on business
changed its name
engaged in any other activity except one which is necessary for the purpose of:
making an application for strike off or deciding whether to do so (for example, seeking professional advice on the application or paying the filing fee for the strike off application)
concluding the affairs of the company, such as settling trading or business debts
complying with any statutory requirement
made a disposal for value of property or rights that, immediately before ceasing to trade or otherwise carry on business, it held for the purpose of disposal for gain in the normal course of trading or otherwise carrying on business

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Replying to jcace:
By Ruddles
13th Jun 2024 08:00

What assets? OP says they can’t afford to pay their tax bill. Which makes me wonder what they mean by “they’ve got a company involved to dissolve the company”.

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By David Ex
13th Jun 2024 10:13

Who are “they” and what’s your involvement?

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Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
13th Jun 2024 10:27

Have 'they' taken any insolvency advice?

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Replying to Insolvency Practitioner:
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By Suffolker85
13th Jun 2024 10:36

They have got an insolvency specialist company to handle it. The company has told them to get the final vat figure but they don’t know when to cancel the vat.

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Replying to Suffolker85:
Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
13th Jun 2024 10:51

Are they liquidating the company?

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Replying to Suffolker85:
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By rmillaree
13th Jun 2024 11:06

but they don’t know when to cancel the vat.

the vat office should be able to answer this question

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By Suffolker85
13th Jun 2024 11:08

All they’ve said to me is that the insolvency company is dissolving their business. I’m guess that means liquidating because they don’t have the money to pay the tax bill. They don’t really understand. They’ve just asked me regarding the vat as I submit them.

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Replying to Suffolker85:
Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
13th Jun 2024 11:14

Dissolving (without first liquidating) and liquidation followed by dissolution are two very different things.

The answer as regards the VAT will depend on which of those they are doing.

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Replying to Suffolker85:
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By rmillaree
13th Jun 2024 11:15

vat de regiotration stuff can be subtle but you have options to delay actual registratioon date whilst still confirfming cessation date as having been earlier - its probably beyond teh remit of this board to go into tyhen full tchnical detail of all then possibilities here - the date may matter for some things - so you may need specific paid advise if you dont want to pay to much vat miss claims or do something you shoudlnt have done

it probably matters very little based on whats been posted - so imho ring up the vat helpline ask away and they should confirm options.

or read 700/11

https://www.gov.uk/government/publications/vat-notice-70011-cancelling-y...

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