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Post Info TOPIC: VAT reclaim with MVL


Master Book-keeper

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VAT reclaim with MVL
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Hi Folks

Scenario:-

VAT registered limited company going to be appointing liquidator for MVL (Members Voluntary liquidation).

Liquidator wants payment up front for their invoice (ie before the liquidation date). Fair point, seems a common stance in such.   

Invoice is expected to show will include their fee & VAT, plus disbursements for usual statutory bits (the latter which we can ignore for VAT).

VAT has been de-registered but with HMRC on notice that invoices will be received, from Accountant etc, so client has 3 months to complete final VAT return.  VAT return will be a repayment position.

My plan - do final VAT return, to include VAT on liquidators fee, pre liquidation.

Liquidator has advised they do the final VAT return AFTER liquidation, but after some discussions yesterday agreed that my client should do the final PRE liquidation return and they will do anything post liquidation. Makes sense generally, but Im still struggling with the suggestion that bill will be in the post Liquidation VAT return. This given the fact that my client's company needs to pay the bill BEFORE the liquidation which thus then clearly creates an actual tax point, which overrides the usual when a service is performed rule.

Or am I missing some point?

I am a little worried that my client might not even get an invoice - Ive asked for a proforma to even pay the damnable amount in the first instance, whereas currently there is just the breakdown of what is due as an overall fee plus what each component part represents.

 



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Veteran Member

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Posts: 67
Date:
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hi,

as far as I can tell the tax point is the earlier of VAT invoice, delivery or payment. The delivery is btp and if payment has been received then that is the atp and that is a compulsory ruling as per the AAT exam I took this year



-- Edited by Riel on Thursday 2nd of November 2017 04:35:59 PM

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Riel


Master Book-keeper

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Posts: 8646
Date:
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Hi Riel Thank you for your response, but I've just now realised my error (finally got some spare time whilst sitting in a car waiting for a very late client!!) and having waded through the VAT act I can see this is not possible until after the liquidation and the liquidators must process the claim, given it goes against reg 111(if I recall correctly, lost the section now(!) post de-reg. Think I will decamp to the pub

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

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