We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

A question about tax!

Had my OR interview today, and all went well.

It looks like we may be handed over to the IP as we have equity in our home of approx £37k (which would never have paid off our £85K debt), but obviously it's a large amount to deal with for paying our creditors.

I have been a director of a limited company for the last 3 years- purely as it was a better way to process my accounts for my business rather than self assessment.
I will now be winding down my company, and have just over a years worth of accounts to finalise- and I'm expecting to have a tax bill of around £2000.

I asked the OR how I would go about settling this, as for obvious reasons- I don't have the money to pay my tax.
She said it would not be covered in the bankruptcy, and to seek advice from the Inland Revenue as to what to do about it.

Has anyone else been in this situation, and if so- what did you do re your tax that you owed?

Comments

  • MTDancer
    MTDancer Posts: 244 Forumite
    Part of the Furniture 100 Posts
    Hi, I was told the tax owed could be taken into bankruptcy but perhaps our experts will answer you on this one
    Building a new life after bankruptcy
  • JCS1
    JCS1 Posts: 5,336 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Is the tax owed by yourself personally, or by the limited company?
  • kes0904
    kes0904 Posts: 43 Forumite
    It will be owed via the limited company.
  • JCS1
    JCS1 Posts: 5,336 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    kes0904 wrote: »
    It will be owed via the limited company.

    In that case it is not covered in your personal bankruptcy as the limited company is a seperate legal entity

    Does the company have any assets?
  • kes0904
    kes0904 Posts: 43 Forumite
    No- it doesn't
  • kes0904
    kes0904 Posts: 43 Forumite
    Did anyone have any more info on this?
    Would be grateful for any knowledge on this subject
    Thanks in advance
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    the company owes the debt not you, if any action was to be taken it would be against the company, you can apply to have the company struck off, tell HMRC and see if they object
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.