Tax question

radarjay

I've been trying to find the answer to this for ages but seem to be going round in circles!

I'm planning on going BR in January and am self-employed. When my tax return arrives in April for the year 2007/2008 I will as usual fill it in the same day and send back that day. I haven't as yet in previous years paid any tax because the business has been in a loss. For 2007/2008 though it now looks like I will make a small profit and will therefore have some tax to pay because of some freelance work I did for a few months this year that is seperate to my online businesses.

I'm pretty sure I won't be able to pay the tax so I wondered what happens?

Richard_S

radarjay wrote: »

I've been trying to find the answer to this for ages but seem to be going round in circles!

I'm planning on going BR in January and am self-employed. When my tax return arrives in April for the year 2007/2008 I will as usual fill it in the same day and send back that day. I haven't as yet in previous years paid any tax because the business has been in a loss. For 2007/2008 though it now looks like I will make a small profit and will therefore have some tax to pay because of some freelance work I did for a few months this year that is seperate to my online businesses.

I'm pretty sure I won't be able to pay the tax so I wondered what happens?

Hi radarjay,

Any tax you owe will be included in your bankruptcy, so nothing to worry about there.

If you haven't already, your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only. CCCS operate a system of telephone appointments that are designed to be flexible and don’t require you to attend an office based interview. At the CAB you will need to make an appointment with a specialist Financial Advisor; other advisors may not have the specialist knowledge you’ll need.

http://www.cccs.co.uk/

http://www.nationaldebtline.co.uk/

http://www.citizensadvice.org.uk/index.htm

If you’re advised that bankruptcy is the most suitable solution to your financial problems then we can offer the best support and anecdotal advice that you’ll find anywhere on the Web.

For more specific advice and support, in an environment that is managed by people with first hand experience of bankruptcy, and moderated to ensure that no deliberately inflammatory or abusive posts are made then please visit:

http://bankruptcysupportersclub.co.uk/default.aspx

Just remember, as desperate as you may feel at the moment, we have all experienced what you are going through at the moment and with the right support and advice things will improve. It’s not an easy route to take but it is a route that will put you back in control of your life rather than just reacting to events.

This is a pro forma response but it's an essential starting point.

Any other questions please post again,

Kind regards

Richard