Tax for self-employed after bankruptcy

DaveyT_2

Hi,

I wonder if anyone could give me a definitive answer on the tax situation of self-employed people after a bankcruptcy order has been made. Would it make any difference to me if I filed for bancruptcy this tax year or next? For info, I am self-employed but not earning much at the moment and am claiming housing benefit. I read somewhere that SE people are exempt from paying tax until the tax year after the bancruptcy order has been made, other people have told me the tax year has nothing to do with it and you are liable to pay tax from the day of bancruptcy. I am very confused and would really welcome any input.

Thanks very much

David

Addicted2Chocolate

I think you will be liable to pay tax from the day after the bankruptcy order. But cant you ring HM revenue and customs and find out? or write them a letter?

Addicted2Chocolate

see this page,, section 'personal insolvencies under self assessment':
http://www.hmrc.gov.uk/bulletins/tb34.htm#personal%20insolvency

the bit 'Where in the bankruptcy year a new source of income commences after the date of the bankruptcy order or sequestration the liability on the new source(s) remains the responsibility of the taxpayer' is clear that you are liable for any liability as a resul;t of income after the bankruptcy order date.

DaveyT_2

Thanks Addicted. It's all very confusing!