HMRC winds down VAT Notice 700/56, migrating insolvency rules to practitioner's handbook
HMRC's VAT Notice 700/56, the reference for insolvency practitioners appointed over VAT-registered businesses, is being progressively dismantled and replaced by a new Insolvency practitioner's handbook. The 12 October 2026 update strips out cash accounting guidance. For office holders who rely on this notice for dividends, Crown set-off, VAT grouping and PAYE on straddling payments, the practical question is where the authoritative text now lives.
- The 12 October 2026 update removed section 11 cash accounting content, replacing it with a link to the Insolvency practitioner's handbook.
- Sections 1, 2, 3, 4, 5, 6, 7, 10, 15, 17, 18 and 23 have already been migrated to the handbook across 2026 updates.
- HMRC states set-off enquiries will not usually be initiated for credits below £250, and Crown set-off will not apply where a credit is secured by a valid fixed charge.
Executive summary
HMRC's VAT Notice 700/56, first published on 1 April 2014, sets out how insolvency practitioners appointed over insolvent VAT-registered businesses should account for VAT and whom to contact. Section 1 now states the notice "is being replaced by the Insolvency…
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Source documents
https://www.gov.uk/guidance/insolvency-and-vat-notice-70056Read by Regulus 15 Oct 2026 at 13:09 UTC
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