Overdue Tax Returns

newuseron

Hi Guys,

I wonder if anyone on here can answer a question I have. I've been bankrupt for a few months now, haven't heard anything since my initial interview (not sure if that's something to be concerned about or not....)

The background to my bankruptcy is that I was declared bankrupt by HMRC, the level of debt in my bankruptcy is based on determinations as I had buried my head in the sand for numerous stupid reasons and had not completed tax returns for a couple of years. The determinations HMRC made were sky high (almost 8+ times if not more my actual taxable income) I calculate my actual debt to the HRMC is around 10k but they say/determine it's 80k+. For previous years for which tax returns were submitted on time the level of determination is near enough correct but things changed and income decreased significantly over the years in which returns were not completed. My question surrounds a potential BRO/BRU as I understand one is probably a certainty if you have outstanding tax returns (lots of "Neglecting Business affairs" in the recent BRO/BRU outcomes page on the Insolvency Service website etc)? If I can get my papers in order and complete the tax returns due for the years in question will this reduce my debt in my existing/on-going bankruptcy and will it also help avoid a BRO/BRU or is it simply too late now and even completing the returns at this stage won't help me avoid one given that I've already been declared bankrupt (and have been for a couple of months) and I suppose the OR has already noted/reported the non submission of returns when investigating my reasons for being bankrupt etc?

Thanks for any advice.

mwarby

It certainly can't hurt, and may make dealings with HMRC easier post bankruptcy. It wouldn't hurt to discuss with OR, he she may be on verge of applying for a bru\bro but maybe more lenient if your showing a willingness to put your house in order