Post Bankruptcy 2 UTR Numbers.

jezza63

I was discharged from bankruptcy 25/02/2020.
As  have been self employed for over 15 years i have a UTR number.
Due to bankruptcy i was informed by HMRC to file tax return by paper return and after tax calculation I would be issued with new UTR number.I was given an extension as by the time things were sorted the deadline date had expired.I was given a new date of return 01/06/2020.
Coronavirus kicked in early March and government announced SEISS Scheme for self employed and extended the date for 2018/2019 tax returns to 23/04/2020 to enable i qualified for scheme. So i filed my tax return and it was received by HMRC 15/04/2020 well before final date.
I have received notice that tax return was received and issued with new UTR number by HMRC.
I have been using gov.uk to check if im eligible for grant and I enter my new UTR and NI number and get message that im ineligible for grant
I then enter old UTR number and get same message.

I dont understand why as im still trading and have up to date accounts that HMRC have demanded.

Any advice please.

mwarby

I would imagine to the HMRC the new UTR makes you a new business, that new business wouldn't have been reading for long enough to qualify (there were concerns about people starting business just in order to claim the money). As for the old UTR HMRC will no doubt have that as having ceased trading, so wouldn't qualify.

I suspect in this case you may need to speak to HMRC directly and see what if anything can be done

MinuteNoodles

mwarby said:

I would imagine to the HMRC the new UTR makes you a new business,

The UTR applies to an individual, not a business, and you normally retain the same UTR no matter how many businesses you open and close over your lifetime.

Genie74

jezza63 said:

I was discharged from bankruptcy 25/02/2020.
As  have been self employed for over 15 years i have a UTR number.
Due to bankruptcy i was informed by HMRC to file tax return by paper return and after tax calculation I would be issued with new UTR number.I was given an extension as by the time things were sorted the deadline date had expired.I was given a new date of return 01/06/2020.
Coronavirus kicked in early March and government announced SEISS Scheme for self employed and extended the date for 2018/2019 tax returns to 23/04/2020 to enable i qualified for scheme. So i filed my tax return and it was received by HMRC 15/04/2020 well before final date.
I have received notice that tax return was received and issued with new UTR number by HMRC.
I have been using gov.uk to check if im eligible for grant and I enter my new UTR and NI number and get message that im ineligible for grant
I then enter old UTR number and get same message.

I dont understand why as im still trading and have up to date accounts that HMRC have demanded.

Any advice please.

Hello

Looking at your discharge date I would assume you went bankrupt on 25th February 2019...

If you are Self Employed and go bankrupt, your business ceases trading under your original UTR and you have to re-register as Self Employed if you wish to continue as Self Employed, so in effect you should have done this on the 26th February 2019 or thereafter...

Once you are bankrupt, your old UTR becomes part of your bankruptcy and a new UTR is then issued if you continue as Self Employed.

Complications now arise because in effect you have two UTR numbers split over a Tax Year!

The SEISS eligibility checker will not work as the HMRC algorithm cannot compute and give you an answer.

You need to dispute this case and get in touch with HMRC directly and they will ask you to submit your 2018/2019 Tax Return on paper format where it is then sent to a special department to be calculated across two UTR numbers and processed.

Looking at your dates above, they will not take into account any 'earnings / profit' on your Tax Return pre-bankruptcy and only consider / calculate your 'earnings / profit' post bankruptcy - so in effect they would only consider from the 26th February 2019 until the 1st April 2019 and calculate 80% of your 'earning / profit' [if any between those dates post bankruptcy].

If you have not disputed it or registered your case with HMRC before or on the 13th July 2020, you will possibly miss out on the SEISS Grant 1

...

I hope this information helps 

p.s. you may be eligible for the SEISS Grant 2 - be aware though that it will be 70% of your 'earning / profit' between the 26th February 2019 and 1st April 2019.