1.
Strictly speaking, no. But you can still express the same idea without inversion. In some cases, you can move the negation around from one clause to the other, and then switch the clauses themselves around. Except maybe in "no sooner... than" , and perhaps in some other cases it could change the meaning, but I really don't think so off-hand.
The following examples show correct (in my opinion) examples of inverted and non-inverted sentences.
Inverted: "Under no circumstances can you use your phone here."
Non-inverted: "You can't use your phone here under any circumstances."
Inverted: "Not until you've eaten supper, will you have any dessert."
Non-Inverted: "You will not have any dessert until you've eaten supper."
This last one is a little tricky, since I think you need to replace "sooner", and I don't think "later" would fit.
Inverted: "No sooner had I finished than the alarm rang"
Non-inverted: "The alarm rang just as I had finished". (Or close enough in my opinion.)
2.
There's no reason you can't, but it can sound rather official, literary or perhaps even a little old-fashioned. But you could always use it sparingly for effect, especially if you're telling a story. That's just my own personal opinion anyway.