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This leaves a rather unsavoury taste in the mouth. My bookkeeper ring-fences the VAT that I owe the HMRC and ring-fences the potential Corp Tax on the basis that this is money that was never mine to begin with. If Just Costs couldn't pay HMRC, that's bad book-keeping. Seems to me that they are like a builder that goes bust, starts up as a new firm the next day and buys the stock from the administrator. It might not be illegal, but it's morally wrong. In essence, the people that play by the rules subsidise the people that do not.