skintandsad's BR thread - self employed & being made BR by HMRC

skintandsad

Hello, me again

Update

Well the last eight months have gone quite smoothly, to my relief. Hubby has continued to trade and has been asked for his incomings and outgoings once by the local court. It proved that he had no excess income so he hasn't been made to make any payments to date.

He applied for, and received a new UTR which I understand is only used from April 2014 onwards; income prior to April 2014 falls under his previous UTR (but please correct me if my understanding is wrong)

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Questions

So here are the bits that I haven't quite got my head around:

Tax Deductions

As he works in construction as a sub-contractor, he is paid on the CIS scheme, with 20% tax deductions from all earnings by the main contractor. I presume we have to inform the main contractor of the new UTR and it should be used from 6th April 2014?

Tax Returns

I cannot quite get my head around what tax returns need doing. He cannot file online anymore for his "old" UTR so any returns would need to be on a paper return (we haven't received one?)

Does he need to:

• Do a tax return from his BR date (August 2013) to the 5th April 2014 using his old UTR or
• Do a tax return from 6th April 2013 to 5th April 2014 using his old UTR or
• Not need to do a tax return at all or
• Something else?

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As always, I am most grateful for any guidance. Thanks for dropping in

S & S xx

skintandsad

Little bumpette. Anyone able to assist, please?

fermi

Maybe answer is in here if you can decipher it?

http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch73-84/Chapter77/part4/Part4.htm

woodformoretrees

I did a tax return for the normal tax year (only part of which I was bankrupt for) on my old UTR. My only advice is that HMRC general staff have not had the training to make a correct advice to you once you are bankrupt and you need each time to speak with a 'technical advisor'. I have been given outrageous advice and instructions by HMRC staff since bankruptcy. I also have a file of written 'apologies' from them.

skintandsad

Thanks guys

I've had a read of that link, Fermi, and it reads to me that you are not obligated to send one although it is advised that you do?

Either way, he (hubby) would be owed money due to the 20% CIS deductions he pays rather than owe them money and he wouldn't be any better off for it, as it would go to the OR.

When I have rang HMRC they make no sense, as woodformoretress points out, they don't seem to know what they are talking about :rotfl:

We have a new UTR from 6th April, so will ensure that we do all returns hereon, but I'll wait and see if we hear from them regarding the period to 5th April...