Income tax and bankruptcy

DavidDAM

Hi all,

Hope you are enjoying a lovely Christmas And new year holiday.

I had a few questions regarding income tax and bankruptcy.

Quick recap of my situation
I was made bankrupt in November 2019 after losing my job and being in no position to pay my debts.

I owe HMRC some money for tax year - 2018/2019 - it’s a figure that is around £2000. This was found out after doing my self assessment tax return online.

Is this covered by my bankruptcy as this owed money was occurred before my bankruptcy,? Or do I still need to pay HMRC this money owed?

Secondly, I have been told by my doctor that I should not commence any work for the next 3-6 months and am extremely unlikely to work again until the next tax year at least. This will entitle me to an income tax refund for this tax year (19/20). Will I be allowed to keep this or will the official receiver take this?

I ask, as this refund was due on the back of working before being made bankrupt.

Flyright

Any refund for the tax years prior to or in the year of your bankruptcy will be claimed by the Official Receiver.

Minkym00

Any tax you paid prior to your bankruptcy is claimed by the OR. One of the forms sent to you by the OR (which you have no doubt signed by now) means you have given up the right to any rebate.

DavidDAM

Hi both,

Thank you for your answers. Does that also mean the same for money owed? I did a self assessment for tax year 18/19 and owe HMRC around £2000. Will that be covered by the bankruptcy or do I need to pay that?

DavidDAM

Money owed to HMRC*

Minkym00

No you don’t need to pay that. All debts pre bankruptcy (save for a few exceptions) are written off.