Readers forum: VAT on retirement

A limited company client recently undertook a members’ voluntary liquidation process to benefit from entrepreneurs’ relief. The company traded as a management consultant until the director’s retirement.

The company deregistered from VAT on 30 June 2019 and the liquidator was appointed on 9 July 2019. My understanding is that VAT on the liquidator’s final fees could be claimed from HMRC on form VAT427 but the liquidator says this is not possible because the fees are not linked to the trading of the business.

My understanding is that VAT should never be a cost to my client because the company only had taxable income; in other words it was not partially exempt.

I also act on behalf of a florist who deregistered from VAT on 30 November 2019 due to reduced turnover. Her final VAT return claimed input tax on an invoice dated 1 October 2019...