VCAS3150 - Cash accounting scheme: Special circumstances: Insolvency
Regulation 62 requires cash accounting businesses that become insolvent to account for all VAT due on supplies made and received whilst using the scheme, which have not already been accounted for under the scheme. The office holder (insolvency practitioner) is responsible for following these accounting procedures. The office holder may if he / she wishes, upon completion of the accounting obligations, continue to use the scheme for post insolvency supplies, provided that they are eligible to do so.