Self Assessment Tax and Bankruptcy
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hopefulfooluk
Posts: 2,441 Forumite
in Cutting tax
Hi all,
Got a situation I wouldn't mind some of you knowledgable types to cast your eyes over!
Sole trader goes bankrupt in April on year 1. Would anything be due on the SA the following January? All tax liability up to the April would be included in the bankruptcy so presumably nothing would be payable the following January, but anything earnt after the April would become payable, along with a payment on account, January of year 2.
Does that sound correct?
Cheers!
Chris
Got a situation I wouldn't mind some of you knowledgable types to cast your eyes over!
Sole trader goes bankrupt in April on year 1. Would anything be due on the SA the following January? All tax liability up to the April would be included in the bankruptcy so presumably nothing would be payable the following January, but anything earnt after the April would become payable, along with a payment on account, January of year 2.
Does that sound correct?
Cheers!
Chris
0
Comments
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When did the business commence?£705,000 raised by client groups in the past 18 mths :beer:0
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It started in 2004 but was then closed down on the bankruptcy date. It was allowed to start back up again the day after so the business trading now technically started in mid April this year.0
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Sorry I should clarify that I used "year 1" as a descriptor when relating to which SA return payments will become due under. Dates wise, trading originally started 1st April 2004 and proprietor went bankrupt 8th April 2009. Started trading again 9th April 2009. I would imagine that tax for work done prior to 8th April 2009 would be included in the bankruptcy and tax payable for work done since 9th April 2009 will become payable Jan 2011.
Is that correct?0
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