Annex C

Chapter 78 - Annex C

Completion of VAT return

The following provides guidance on the issue of the standard VAT return form issued by HMRC (VAT 100) and the final VAT return form (VAT 193)

Please note that the boxes on form VAT 100 and VAT 193 are the same.

1. Check the funds tab on the case file of ISCIS and obtain details of all assets realised, payments made, and the VAT charged to and by the official receiver (see paragraph 36.42 for VAT payable on fees)..

2. Check that the business was not carried on by the official receiver after the bankruptcy or winding-up order. This is unusual and even then a special manager will normally have been appointed and either the special manager or an IP can be expected to deal with VAT.

3. Complete the form in BLACK INK. Many VAT forms are now submitted online and the paper return is designed to be read by machine.

4. Do not enter a dash or leave any box blank

5. If there is no pence write 00 in the pence column

6. If there is a negative amount to be added put the figure in brackets.

[BOX 1] enter the total amount of VAT on assets sold

[BOX 2] enter "NONE" (unless instructed otherwise by the examiner)

[BOX 3] enter the total of box 1 and Box 2

[BOX 4] enter the total amount of VAT paid on items charged to the estate account such as the fees of the official receiver’s agents (*see note below)

[BOX 5] enter the difference between the amounts in boxes 3 and 4. If this is a positive figure then this amount must be paid to HMRC. If it is a negative figure this is the amount reclaimed from HMRC as an asset in the bankruptcy or liquidation.

[BOX 6] enter the total amount of the assets sold and any trading receipt (excluding VAT).

[BOX 7] enter the total amount of agents and professional fees and other costs of the estate excluding VAT.

[BOX 8] enter "NONE” (if shown in Box 2).

[BOX 9] enter "NONE" (if shown in Box 2).

* Note: although agents will usually account "net", deducting their charges from the sale proceeds and sending the balance, the VAT return must contain the full amount of output VAT charged to those who bought the assets, the input VAT on the full amount of the agents’ charges and the gross realisation proceeds in box 6. 11 Complete the declaration at the end of the return for "the Official Receiver and liquidator/trustee in bankruptcy".

7. Scan a copy of the return to the electronic case file and send the form VAT 100 or 193 to:

National Insolvency Unit, HMRC, Insolvency Operations, Queens Dock, Liverpool, L74 4AF.

8. Make a note on ISCIS of the completion of the form.