If a business has declared voluntary liquidation, can it demand payment for work carried out before?

Question

Also, can it reform as a limited company, using the spouses name instead of his own.

The person concerned has appeared at my door and demanded payment for work that was never finished. He issued a bill for approx £1000, but said if I paid him the £800 (the amount less the VAT) he would let the matter drop, if not he will send round the balliffs to recover the full amount. Surely he can`t do this, isn`t he evading the VAT, for which he could be fined?

Answer 1

Yes, a business in liquidation can demand payment of money you previously owed . In fact, the liquidators will insist that the owner chase down and collect such payments as part of the liquidation process.

One very, very important tip, though: Make 100% sure that you get a proper receipt and full documentation for your payment (and if they agree to take only a portion of the amount due, then you must get a letter from them stating that this is full & final settlement of your bill).

The reason this is so important is that you may need proof later that you've paid that bill.

From your £ sign, I assume you're in UK. Here is a UK government web site that explains the situation clearly:

Answer 2

If it performed the work or provided the services, of course it can demand payment.

Reforming under a different name can get tricky, so could be subject to challenge.