Following
the recent restructuring of HMRC so that all tax matters relating to
insolvencies are handled in offices dependent upon the case type rather than
the type of tax involved, there have been particular problems with obtaining tax
clearance in MVLs. I understand that there
was no proper handover plan or training provision so the HMRC staff are under
pressure and not coping.
Since
we are talking about MVLs it is just too risky for you not to obtain positive
closure clearance from HMRC before holding the final meeting and being released
as liquidator. As a result, you will
need to factor in this likely delay when seeking closure clearance. Remember that if you do not get closure
clearance in time then you will have to issue an annual progress report if the
final meeting is not held until after the anniversary date. For more information on this see our recent
Blog Article, “It’s all in the timing”, by clicking here.
In
order to maximise your chance of getting closure clearance in time you could
try indicating the proposed date of the final meeting in your clearance letter
to them and asking them for clearance by a specific date. That date should be early enough for you to
still be able to issue your final report and hold the meeting by the
anniversary date, and ideally early enough to give you a chance to chase them
should they not reply by the date requested.
Also consider highlighting that date in the letter and explaining why clearance
by that date is required. This approach should
also help HMRC prioritise their work
If
you need to chase HMRC for a response I understand that HMRC are currently not
giving out specific names or direct lines to staff so that you have to go
through the main switchboard. That makes
chasing them by phone difficult, so for the moment you might find it better to chase
them by letter. Again include and
highlight the date by which you want closure clearance.
If
you do need to issue an annual progress report then try and be smart when
preparing it. Include in it all the
information you will need to include in your final report so that all you have
to do when preparing your final report is to refer to having obtained closure
clearance and update your receipts and payments account with a new date. Remember though that you will also have to
include the extra column in the final receipts and payments account for the
reporting period, i.e. the post anniversary period, as well as a cumulative
column. If you are on a fixed fee, as
opposed to time costs capped at £x, then remember that there is of course no
need to include SIP 9 disclosure about time costs incurred or a SIP 9 table in
your reports.
