VAT Avoidance by closing a company down...

[kurt535]

So,

Does anyone know if a douche bag - sorry a company - I know, shuts down it's hidden vat liabilities die with it or can they still get caught? To add more comedy to the scenario, they then intend opening back up...

Ty in advance!

[Eric Mc]

What do you mean "caught"?

If a company closes down in an insolvent position, there is little HMRC can do to force the company to pay over any unpaid VAT.

The only way they could get their money would be if they could prove that the directors traded unlawfully or fraudulently - which is notoriously difficult to prove and usually not worth the effort - unless that VAT owed is very substantial.

[kurt535]

VAT stretches back over 8-9 years in my estimation. Probably in the region of 450k. i know they are closing the company and then re-opening to avoid the liability.

[Super Slo Mo]

How do you manage to have a VAT liability that stretches back that far? I got my fingers rapped for missing the last quarter's payment by less than a week.
I can't believe HMRC would let it drag on that long surely?

[kurt535]

Super Slo Mo said:

How do you manage to have a VAT liability that stretches back that far? I got my fingers rapped for missing the last quarter's payment by less than a week.
I can't believe HMRC would let it drag on that long surely?

I agree. as do other people who are genuinely surprised what's going on and how they have got away with it for so long not registering.

[megaphone]

OP are you saying they are not VAT registered? They have been charging VAT and keeping it?

[FredClogs]

If said company or person has been charging VAT and is not VAT registered that is VAT fraud and a serious criminal matter that won't just go away on dissolving a company. The chances of being discovered do significantly reduce though. Tbh I'd grass them up, decent jail.term and seeing all their stuff auctioned off would do them a world.of good.

[Doofus]

What are "hidden VAT liabilities"?

[Eric Mc]

Yes - the OP has not actually stated what he thinks the company has actually done wrong regarding VAT. He needs to explain in detail what he thinks they have actually done.

[kurt535]

FredClogs said:

If said company or person has been charging VAT and is not VAT registered that is VAT fraud and a serious criminal matter that won't just go away on dissolving a company. The chances of being discovered do significantly reduce though. Tbh I'd grass them up, decent jail.term and seeing all their stuff auctioned off would do them a world.of good.

Fred, thanks for that; matter now in hand.

thanks to other responses too.

[Eric Mc]

So - what did they do?