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  • FIRST POST
    • Suzanne83
    • By Suzanne83 5th Oct 17, 3:05 PM
    • 38Posts
    • 1Thanks
    Suzanne83
    Letter from HMRC 4 years post bankruptcy
    • #1
    • 5th Oct 17, 3:05 PM
    Letter from HMRC 4 years post bankruptcy 5th Oct 17 at 3:05 PM
    Hiya.

    We went bankrupt in June 2013. I paid moonbeaver my tax payments through my wages. So I had a nil tax code.

    I have had a letter today from HMRC to say I owe £2700 which when I have called them they tell me it was from year 2013 - 2014.

    Am I the only one who didn’t realise this would happen???? The lady I spoke to at HMRC has passed my record on to their specialist bankruptcy team to look into it more but I’m completely in shock. It seems so out of the blue.

    Please help, any advice appreciated.
    Thanks.
Page 1
    • TheGardener
    • By TheGardener 5th Oct 17, 5:50 PM
    • 2,164 Posts
    • 2,045 Thanks
    TheGardener
    • #2
    • 5th Oct 17, 5:50 PM
    • #2
    • 5th Oct 17, 5:50 PM
    If you had a nil TC and were paying your 'surplus' to moonbeaver - you shouldn't have a tax bill for that period at all. You need to speak to HMRC and double check they have all the right info.
    • wharty
    • By wharty 5th Oct 17, 10:18 PM
    • 350 Posts
    • 634 Thanks
    wharty
    • #3
    • 5th Oct 17, 10:18 PM
    • #3
    • 5th Oct 17, 10:18 PM
    It was my understanding that the Nil tax code means you still owe the tax on your earnings while bankrupt. The tax code means you have a surplus to pay your creditors. Once you get your normal code you will then still have to pay the tax that you owe to HMRC but a year later? Hope I’m wrong.
    • luvchocolate
    • By luvchocolate 6th Oct 17, 8:46 AM
    • 1,465 Posts
    • 1,316 Thanks
    luvchocolate
    • #4
    • 6th Oct 17, 8:46 AM
    • #4
    • 6th Oct 17, 8:46 AM
    The tax due during the tax year of your B.R is paid to the O.R.
    In April you go back to P.A.Y.E. as normal.
    You do not have to pay it twice.
    • Suzanne83
    • By Suzanne83 6th Oct 17, 8:41 PM
    • 38 Posts
    • 1 Thanks
    Suzanne83
    • #5
    • 6th Oct 17, 8:41 PM
    • #5
    • 6th Oct 17, 8:41 PM
    Hopefully they will get back to me soon then. Praying it’s an oversight!

    Thanks for your replies x
    • TheGardener
    • By TheGardener 7th Oct 17, 9:45 PM
    • 2,164 Posts
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    TheGardener
    • #6
    • 7th Oct 17, 9:45 PM
    • #6
    • 7th Oct 17, 9:45 PM
    It was my understanding that the Nil tax code means you still owe the tax on your earnings while bankrupt. The tax code means you have a surplus to pay your creditors. Once you get your normal code you will then still have to pay the tax that you owe to HMRC but a year later? Hope I’m wrong.
    Originally posted by wharty
    No! Not at all. HMRC simply become creditors same as everyone else like the bank and whoever else you owe money to. The OR collects the tax money you don't pay due to the NT code - via an agent (like moonbeaver or Clarke Willmot). This continues until either the start of the next new tax year in April or if you change jobs - which ever comes first. From the start of the new tax year you pay your tax on your earning as normal - there is no 'back tax' to pay.
    • Suzanne83
    • By Suzanne83 8th Oct 17, 7:34 AM
    • 38 Posts
    • 1 Thanks
    Suzanne83
    • #7
    • 8th Oct 17, 7:34 AM
    • #7
    • 8th Oct 17, 7:34 AM
    So you think this is an error and I shouldn’t have to pay it??


    Thanks,
    • TheGardener
    • By TheGardener 8th Oct 17, 7:52 AM
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    TheGardener
    • #8
    • 8th Oct 17, 7:52 AM
    • #8
    • 8th Oct 17, 7:52 AM
    So you think this is an error and I shouldn’t have to pay it??


    Thanks,
    Originally posted by Suzanne83
    It does sound like an error - I think you need to check with HMRC that they understand you were BR during that 2013/14 tax year and you were on an NT code and that moonbeaver were collecting the 'surplus' for the OR. You should not have been liable for tax until April 2014 onwards unless you changed jobs during that 13/14 year. And if oyou did change jobs, you should have had a normal tax code and paid normal tax from the start of the new job regardless of whether it was during the 13/14 tax year.
    Last edited by TheGardener; 08-10-2017 at 7:59 AM.
    • Suzanne83
    • By Suzanne83 8th Oct 17, 8:15 AM
    • 38 Posts
    • 1 Thanks
    Suzanne83
    • #9
    • 8th Oct 17, 8:15 AM
    • #9
    • 8th Oct 17, 8:15 AM
    No I didn’t change jobs. I really hope this “team” ring me back ASAP.

    I hope you’re right. Thank you
    • TheGardener
    • By TheGardener 8th Oct 17, 8:20 AM
    • 2,164 Posts
    • 2,045 Thanks
    TheGardener
    It might be helpful to get your BR paperwork together ready to send a copy of the judgement as proof of your NT liability. Any tax arears prior to the 2013/14 year would have fallen into the BR anyway. Your tax liability will be from April 2014 onwards only.
    Last edited by TheGardener; 08-10-2017 at 8:22 AM.
    • Suzanne83
    • By Suzanne83 8th Oct 17, 8:36 AM
    • 38 Posts
    • 1 Thanks
    Suzanne83
    We never had any tax arrears...that I know of! But yes good idea.
    • wharty
    • By wharty 8th Oct 17, 9:39 AM
    • 350 Posts
    • 634 Thanks
    wharty
    So there were no arrears before the bankruptcy? It seems to me that the OR has effectively put you into debt (a debt being something you have to pay back at a later date) while you were undischarged?
    They took the tax you were due to pay HMRC and gave it to creditors and now they want the money back? Seems a little unfair to me. Are there any agreements with HMRC or Moonbeever that this would happen?
    • Suzanne83
    • By Suzanne83 14th Oct 17, 9:00 AM
    • 38 Posts
    • 1 Thanks
    Suzanne83
    Still waiting to hear back. I was told 5 working days. I rang last thurs! Thought it was too much to ask for! Such a stress waiting. ��
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