Bankrupt- sole trader taxes and VAT

krissys

I am a bit confused and getting conflicting advice.

I was made bankrupt end of January. My VAT period quarter for October to December should be reported to HMRC tomorrow at the latest.

I am no longer trading and this would be the final one. I struggled to log in today and after hours trying to contact HMRC I called the insolvency office who said I could file if I wanted to but not to panic.

I then went online and found advice that I should be filing both my last set of accounts and vat.

I have to be honest and say that my last couple of months or so of accounts is in a huge mess as I have been struggling with depression and I am not sure that my figures are correct. I don’t know whether I should leave it or try and work through it.

An important point is that as most of my items were 0 rated but I still used services that were subject to vat, I usually ended up with a rebate (around £500) so I guess this would change things?

National_Debtline

Hi Krissys,


In a situation like this I would recommend speaking to Business Debtline to discuss exactly where you stand. They are available on 0800 197 6026, and are open Mon - Fri 9am - 8pm. Good luck,


Laura
@natdebtline

antonic

You will need to file a VAT return for the period 01/10/17 to 31/12/17.

Tell HMRC the date you were made bankrupt (can be done over the phone) and they will cancel your VAT Registration number for you.

You will then need to file a VAT return for the period 01/01/18 to the date of deregistration, then a Final 99/99 Return to account for any sales etc after the date of deregistration.

If you dont tell HMRC you will end up with a VAT Assessment which could be wrong.

Hope this helps.

krissys wrote: »

I am a bit confused and getting conflicting advice.

I was made bankrupt end of January. My VAT period quarter for October to December should be reported to HMRC tomorrow at the latest.

I am no longer trading and this would be the final one. I struggled to log in today and after hours trying to contact HMRC I called the insolvency office who said I could file if I wanted to but not to panic.

I then went online and found advice that I should be filing both my last set of accounts and vat.

I have to be honest and say that my last couple of months or so of accounts is in a huge mess as I have been struggling with depression and I am not sure that my figures are correct. I don’t know whether I should leave it or try and work through it.

An important point is that as most of my items were 0 rated but I still used services that were subject to vat, I usually ended up with a rebate (around £500) so I guess this would change things?