please help with good advice regarding vat

chambers007_2

we have a limited company (although my husband is only a sub-contractor) with no employees, no assets and no savings. We have now ceased trading and considering winding company up.
Like many people, we are in just a little trouble with tax and vat.
have been speaking to hmrc regarding tax and to be quite honest they are being quite sympathetic. The problem is the vat people. Had someone phone me up and I explained the situation. She frightened me when she said they can take our property, because vat is registered to our address (because you can't register vat to an accountant)
Is this true, can they really do that?
Would appreciate any help out there.

thanks.

JPS29

Hi Chambers.

I also owe the VAT man a considerable amount of money, £43k to be precise.

I too had a limited company. In my situation I have invited HMRC to petition to wind up my company and told them that I would not resist this (saves me the cost). This money WILL be written off when my company is liquidated (no assetts). However i did have a registered office, albeit now transferred to my accountants. Im not sure about the advice you have been given, maybe they are confusing you as a sole trader with the business registered at your address, if this makes any difference anyway???? but would suggest you give the business debt helpline a ring. They were fantastic with me and advised me re my VAT situation
Their web is www.bdl.org.uk

or phone 0800 197 6026

Let us know how you get on.

lesley1960

If you are a limited company the debt is attached to the company and not to you personally , however check you have been trading as a limited company as far as your VAT registration is concerned . If you had been previously trading as a sole trader / non limited company ,any unpayed VAT incurred during this time won't be written off and you will be liable

chambers007_2

yes, trading as limited company and not sole trader(have been for 3 years).
although our business is registered to our accountants address, the vat is registered to our home - because apparently you can't have vat registered to an accountant.

look forward to any more help/advice

cheers to you all.

silvercar

The VAT bill from a limited company is just that: limited to the company.

They could sieze assets of the company, but not anything owned by you individually.

chambers007_2

so the vat cannot take our house from us?
we have no assets/land/savings etc, but the vat woman i spoke to today said they can come to my address because the vat is registered to our home.
It is also through the limited company.
I will phone the debt line tomorrow. Would it be wise to let someone else wind the company up?

thanx.

JPS29

To wind a company up yourself can be expensive, and at the moment it sounds as if you dont have this sort of money.

There are few creditors that will actually petition to put you into liquidation and wind the company up (although many may threaten) but HMRC seem to take pleasure in doing it.

Our circumstances may be different but in my case I decided to let HMRC liquidate my business and wind it up due to the vat debt. Still ongoing but IMO it's better them paying it than me, also it should be closed down properly this way.

Business debt helpline really will help you with this one. They are non-judgemental, impartial and basically tell you whats best for you.

Hope this helps