I recently sold my UK business (registered as self-employed) to someone in America. 
I had not yet provided a VAT return. My question is: as the business carried on as normal in charging VAT to customers, who pays the outstanding VAT – the buyer or the seller? 

Arthur Weller replies:  

In HMRC’s VAT Transfer of a Going Concern manual at VTOGC4000 (https://tinyurl.com/3ffzb3ds) it states: “Under Regulation 6 VAT Regulations 1995, subject to certain conditions the VAT number of the seller may be reallocated to the purchaser (VAT 68 procedure). This has the effect of making the purchaser responsible for the debts and liabilities of the seller. Where the VAT number has not been so reallocated, this is not the case, even where the seller and purchaser are closely associated, for example with common directors.”