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Recovering input tax on post-deregistration expenses after an MVL.
My client’s limited company ceased to trade on 31 October 2016 and is now going through a members’ voluntary liquidation (MVL) so that the shareholders can claim entrepreneurs’ relief on a large cash balance held in the company’s bank account. The company deregistered from VAT at the end of October (it was fully taxable). My questions concern input tax on post-deregistration expenses and the scope to submit form VAT427 to HMRC.
First can input tax be claimed on the liquidator fees which will be invoiced to the company at the end of the process? If the answer is ‘yes’ in principle should the liquidator invoice the company now (before it is wound up) so form VAT427 can be submitted promptly? Second is the situation affected by the fact that the company used the flat rate scheme until it deregistered? Finally could my own practice invoice the...
