P800 tax calculation from when bankrupt

Gemsie3

Hi guys wonder if you can help. I was made bankrupt in 2008 and back in deb this year received one of the dreaded hmrc p800 tax calculations confirming I had under paid tax by 800 during the tax year 2008/2009 it also showed during that year I got a rebate of £650. I have challenged this and have been advised that the the cheque was sent to the insolvency service. Am I still liable for repaying this tax as I didn't get the rebate? Also I can't work out why I had a rebate - I was on a nil tax code for 6 months of that year so am at a complete loss. Any thoughts gratefully appreciated!

Thanks
Gemsie

taxsaver

What exactly was the date of your bankruptcy in 2008?

The chances are that the tax under-payment has arisen wholly since then and is not therefore removed by virtue of your BR. However, it will be important to understand what and when the refund was paid for as it is difficult see to see how that could have arisen so soon after you became BR. HMRC give you a new tax payer reference number (known as a UTR) when you become BR, so if the refund given related to your old UTR and they made an error in giving that repayment then they cannot now reclaim it from you under your new UTR as the 'debt' belongs to your old UTR..... if that makes any sense?

JCS1

Make contact with HMRC, they have been sending a few of these letters in error, mainly relating to the NT Tax code.

JCS1

taxsaver wrote: »

What exactly was the date of your bankruptcy in 2008?

The chances are that the tax under-payment has arisen wholly since then and is not therefore removed by virtue of your BR. However, it will be important to understand what and when the refund was paid for as it is difficult see to see how that could have arisen so soon after you became BR. HMRC give you a new tax payer reference number (known as a UTR) when you become BR, so if the refund given related to your old UTR and they made an error in giving that repayment then they cannot now reclaim it from you under your new UTR as the 'debt' belongs to your old UTR..... if that makes any sense?

I thought UTR's related to self employment?

When a person goes bankrupt, they can be put on to a NT PAYE tax code, so they don't pay tax for the remainder of the tax year (or until they change employer). But they pay this amount over to the OR instead - and HMRC systems can't always cope with this.

Gemsie3

Bankruptcy was 31 July 2008 and nil tax code lasted for 3 months before I changed jobs. Hmrc say refund was issued in April 2009.
Thanks I will contact hmrc - so frustrating!

Really appreciate your help!

taxsaver

JCS1 wrote: »

I thought UTR's related to self employment?

I think you'll find that every tax payer has an UTR but in general it's only the s/e, or the employed that also have to complete tax returns, that get to know about them.

suso

taxsaver wrote: »

HMRC give you a new tax payer reference number (known as a UTR) when you become BR, so if the refund given related to your old UTR and they made an error in giving that repayment then they cannot now reclaim it from you under your new UTR as the 'debt' belongs to your old UTR..... if that makes any sense?

a UTR would not be applicable if a P800 has been issued,

UTR's are for self assessment, a P800 is issued when HMRC have calculated the tax entirely through PAYE,

to the OP, during the tax year of bankruptcy did you start any new employments after you were made bankrupt, or start to receive any income (pensions, employment, or benefits.)

If the income was already being paid at the point of bankruptcy then a NT code would be applied and no underpayment will be due.

There was an issue last year that P800's were being issued which were not applicable, it is likely to be a mistake as if HMRC believe tax was due you would have been sent a self assessment form.

As you received it in december last year, and have only just mentioned it are you being chased for payment, or has you code being reduced ?

JCS1

This thread from a few months ago might help:

https://forums.moneysavingexpert.com/discussion/2907494

Gemsie3

No I have been in dispute with hmrc since receiving it regarding the refund as I received no notification or cheque. They have only just confirmed that this was sent to insolvency service as they have refused to take my queries over the telephone insisting they can only investigate if I write which I have been doing repeatedly!

Re my income I was employed when bankrupt and got nil code was made redundant so got new employment and was then taxes again on a what I thought was a correct code - was just the normal

My tax code has not yet been changed to take the underpayment into account
One. Nil tax code was in place for 3-4 months need to check my file

suso

Gemsie3 wrote: »

No I have been in dispute with hmrc since receiving it regarding the refund as I received no notification or cheque. They have only just confirmed that this was sent to insolvency service as they have refused to take my queries over the telephone insisting they can only investigate if I write which I have been doing repeatedly!

Re my income I was employed when bankrupt and got nil code was made redundant so got new employment and was then taxes again on a what I thought was a correct code - was just the normal

My tax code has not yet been changed to take the underpayment into account
One. Nil tax code was in place for 3-4 months need to check my file

on your new employment what code were you taxed on? as you say it was the normal i presume it was 603L w1 (might be 603L m1 or 603L x or 603L non !!!)

phone HMRC early on tuesday (ideally before 9:30, no point phoning on monday as the queues are approx 200 people waiting at 8:00 am and never decreases) ask to speak to a technical officer regarding bankruptcy and get some answers. It should not need to be resolved in writing. have your calculation to hand

You last comment - need to check your file - HMRC do not make entries on your credit file unless something gets to the court stage, so no adverse entries from them.

Ineedaname

suso wrote: »

You last comment - need to check your file - HMRC do not make entries on your credit file unless something gets to the court stage, so no adverse entries from them.

I think the OP meant they needed to check their own files at home for how long exactly the Nil tax code was applied.