Claiming back 'backdated' VAT when company is dissolved

It sounds like you have gotten yourself in a big mess here if you have been running a business via a limited company, and got so late with filing it has been dissolved. You probably have some serious issues here about any taxes you didn’t pay as a limited company, and how you are legally representing yourself, not to mention what transactions you carried out under which legal status when you changed to being a sole trader.

Given I wouldn’t let a client get into this situation I don’t know off the top of my head the answer, but I cant think how you would take money out of a dissolved company if it has been auto dissolved by companies house. Involuntary insolvency isn’t something i tend to deal with as it is a specialist area. It is possible however that if you correctly changed the VAT status from ltd co. to sole trade (although from your lack of other compliance in other areas this seems unlikely) the £4k may still be due to you - subject of course to the investigation concluding you are due this amount. Again I am not sure off the top of my head as this is a very unusual situation and there may be some clause or other preventing this transfer that would need to be reviewed.

I would however strongly urge you to take professional advice to review your affairs to ensure you are properly declaring all your income and don’t have a large exposure to back taxes due to this mess with the limited company. This sort of case would have the tax inspector rubbing their hands in anticipation of what they might find.

Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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