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HM Revenue and Customs Brief 42/14 - Integration of HMRC claims in insolvencies


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Issued 20 November 2014

Purpose of this brief

This brief is intended to alert the insolvency profession of upcoming changes in how HM Revenue and Customs (HMRC) deals with the tax affairs of insolvent taxpayers.

Who needs to read this

This brief is aimed at insolvency practitioners and official receivers.


HMRC was formed in 2005 following the merger of the former Inland Revenue and the former HM Customs & Excise. Both former departments had their own separate arrangements for lodging claims in UK insolvencies. Unfortunately, since the merger itís not been technically feasible to marry together the insolvency claim arrangements for the 2 former departments to produce a single claim encompassing all HMRC taxes and duties.

However, following an internal restructuring of insolvency processing work, HMRC will shortly be in a position to issue Ďintegratedí insolvency claims encompassing all HMRC debt. This will be achieved by centralising insolvency claims handling work at the following sites for the following insolvency types:

Bankruptcy/sequestration, trust deeds, administrative receiverships and liquidations (excluding Members Voluntary Liquidations (MVL))

Insolvency Claims Handling Unit (ICHU)
Benton Park View
NE98 1ZZ

Company administrations , MVL and voluntary arrangements

Enforcement and Insolvency Service (EIS)
Durrington Bridge House
Barrington Road
BN12 4SE

Information and action required

This will effect insolvency practitioners as follows:

  • insolvency practitioners should continue to complete a form VAT 769
  • for new appointments in bankruptcies/sequestrations, trust deeds and liquidations (excluding MVL) the completed form VAT 769 should be sent to ICHU at the above address with immediate effect
  • for new appointments in company administrations from 1 November 2014 onwards the completed form VAT 769 should be sent to EIS Worthing at the above address
  • for new appointments in MVL from 1 December 2014 onwards the completed VAT 769 should be sent to EIS Worthing at the above address
  • insolvency practitioners should ensure that the form VAT 769 they use is the version available on the HMRC website
  • for company administrations, it will expedite processing of the form VAT 769 if itís accompanied by a Notice of Appointment 2.12
  • unfortunately, due to the need to integrate VAT with the other HMRC taxes, details of any VAT debt owed by the insolvent business to HMRC may not be notified to the insolvency practitioner as quickly as has been the case in the past, so if the records of the business the insolvency practitioner is appointed over indicate a VAT debt to HMRC, please be patient as the integrated claim will be issued as soon as possible
  • EIS Worthing will also take on responsibility for managing the post-appointment VAT account on company administrations for new appointments from 1 November 2014 and MVL for new appointments from 1 December 2014
  • however, EIS Worthing wonít be responsible for cancelling the VAT registration - requests for VAT deregistration for company administrations and MVL should be sent to:

Grimsby Deregistration Unit
Imperial House
77 Victoria Street
DN31 1NH

  • HMRC will require a dividend payment on the integrated claim, not on any separate components of the claim ie HMRC will no longer require a separate dividend payment for the VAT element of their claim - dividend payments should be sent to the appropriate office for the insolvency type as above
  • the procedure for HMRC lodging claims in voluntary arrangements is unaffected by this change

HMRC expects that this change will be both cost effective and will help simplify insolvency practitioners interaction with the department. Any further changes in process that may become necessary as a result of the above transfer of work will be notified to the insolvency profession separately at the appropriate time.

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© Crown Copyright 2014.

A licence is needed to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs.

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Article Published/Sorted/Amended on Scopulus 2014-11-27 09:00:48 in Tax Articles

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