Trading before company dissolution

[clarkey]

I used a contractor for a while (about 2 years I think). He invoiced us from a VAT registered limited company monthly. At the end of September I cancelled the contract (with one month notice).

Today I've found out that he had asked our accounts payable people to pay to a different bank account (several months ago), so I took at look at his company details, and on 4th December, his company was dissolved.

So he had certainly traded in the 3 months prior to dissolution, which I thought wasn't allowed. And I guess he didn't include these invoices in the dissolved company's accounts or VAT return either.

So it looks like he's been dodgy, what are the implications for him if he gets caught? And is there any come back on us (can't see how there would be though).

Thanks for your advice, ho ho ho and all that.

[trunnie]

For him - its not generally a problem to trade up to dissolution. Trading whilst insolvent is a different matter.

For you - possibly a problem if the Treasury Solicitor (who takes on the assets of dissolved companies) claims that your debt is outstanding as you didn't pay the company; that is assuming that the account that you paid isn't that of the company.