tax return in bankruptcy

pauleenbruce

hi does anyone know if you still have to complete a tax return when bankrupt. i have until 31 october to complete my tax return but obviously no money to pay my accountant to do it. if it does have to be done would the or release some of my money to pay the accountant? by the way i was made bankrupt in august.

pauleenbruce

no i stopped trading in march as i realised that i had become insolvent dont think i will owe any tax as we had not made a profit for over a year. our normal management accounts were done upto that date,so because we have not traded for over 6 months and not realy had to speak to the accountant they say they will have to charge to do our tax return

pauleenbruce

also i must add the or has all my accounts but the accountant will have copies

pauleenbruce

its now well past the date to complete tax return but have not done anything about it as i dont have any of my paperwork, it is all with the or and the accountant has copies of everything, i am almost possitive that i will not owe any tax, should i try to contact rev and customs to explain it all or do you think they will insist on me doing the returns anyway.

Flyright

You are still required to complete a tax return for the tax year in which your bankruptcy falls.

[Deleted User]

Hi
AFAIK You will still have to submit a tax return and I think oct was the paper return deadline, so you may be able to submit online.
If you've not traded since br and everything was uptodate for that date, surely you can't be far from being ready to submit.

I've been trying to get a new UTR because I carried on se after br and a decision on another query that I'll have to start chasing v soon. So I would suggest that you get in touch with hmrc and ask them to confirm whatever you're told in writing (apparently they're months behind answering mail sent in, so try phone or go to an inquiry centre)
I've also heard that they're having a lot of internal changes so you may have to be persistent to get to someone who understands your situation.

lbm

debtinfo

Actually you are not, Your tax starts again from the bankruptcy order date under a new reference, alot of people never complete any outstanding tax returns, phone them up and tell them about the bankruptcy and ask for a new reference for ongoing tax from the bankruptcy order date

[Deleted User]

debtinfo wrote: »

Actually you are not, Your tax starts again from the bankruptcy order date under a new reference, alot of people never complete any outstanding tax returns, phone them up and tell them about the bankruptcy and ask for a new reference for ongoing tax from the bankruptcy order date

I understood (even from talking to hmrc) that for the tax year that fell into my br I should still submit a return
From day after br I need a new tax reference (UTR) which hmrc have re-registered me as newly se from br date

Flyright

I don't think HMRC apply a new self assessment reference number until the next (post-bankruptcy) tax return for those that stay in self employment after bankruptcy. In that situation a person needs to fill in a tax return for the tax year in which their bankruptcy falls and HMRC will be a creditor for any tax due in the tax year of bankruptcy, a new reference number will not be generated until the next tax return year.

debtinfo

lbm wrote: »

I understood (even from talking to hmrc) that for the tax year that fell into my br I should still submit a return
From day after br I need a new tax reference (UTR) which hmrc have re-registered me as newly se from br date

Of course they can ask you to, and some people choose to for their own reasons, but they cant make you do it

The new tax shouldnt fall into the bankruptcy for the bankruptcy year as you have efectively changed job, only if you stay in the same job does the tax fall into the bankruptcy

debtinfo

Flyright wrote: »

I don't think HMRC apply a new self assessment reference number until the next (post-bankruptcy) tax return for those that stay in self employment after bankruptcy. In that situation a person needs to fill in a tax return for the tax year in which their bankruptcy falls and HMRC will be a creditor for any tax due in the tax year of bankruptcy, a new reference number will not be generated until the next tax return year.

The new tax number should be generated for the period from the day of the bankruptcy onwards