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Bankruptcy and personal tax free allowance
arcon5
Posts: 14,099 Forumite
Say you owe HMRC £800 an in the current tax year have earnt £9k...
I read when you declare bankruptcy you complete your accounts up to the date of bankruptcy so if in this tax year you owe £200 (making total liability £1k)... This gets written off yes?..
So after bankruptcy you complete your accounts from bankruptcy to end of tax year and declare a further £4k... Will you pay £800 as tax or will you pay £0? In other words does the tax-free amount reset or will the pre-bankruptcy earnings also be used to calculate your tax figure at the end of the financial year?...
Hope this makes sense.
I read when you declare bankruptcy you complete your accounts up to the date of bankruptcy so if in this tax year you owe £200 (making total liability £1k)... This gets written off yes?..
So after bankruptcy you complete your accounts from bankruptcy to end of tax year and declare a further £4k... Will you pay £800 as tax or will you pay £0? In other words does the tax-free amount reset or will the pre-bankruptcy earnings also be used to calculate your tax figure at the end of the financial year?...
Hope this makes sense.
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