DRO and Inland Revenue

hanger312

I am a discharged bankrupt and because my house was not immediately repossessed due to negative equity, some debts have been added to a DRO recently.

My question is do I need to let Inland Revenue that DRO has been granted and will they they create a new tax reference number like they did following my bankruptcy?

Can't find any info in the official DRO pack or on the IR website.

Thanks in advance.

hanger312

forgot to mention i'm self employed

National_Debtline

Hi hanger

In a DRO, there is no requirement for you to inform the IR - if they are a creditor of yours, the Insolvency Service will be doing that anyway.

In terms of your tax code, the DRO is irrelevant.

In bankruptcy, you are moved on to a nil tax code for the remainder of that tax year - any surplus income arising as a result is claimed by the Official Receiver. This does not apply to DROs, however.

If you haven't found an answer elsewhere in the meantime, I hope this will help.

Regards

Dennis @NDL