Final tax return before going Bankrupt 15 August at 5:33PM in Bankruptcy & living with it 2 replies 392 views

Richshack34

Hi there I have debts in excess of 50k with half of this owed to HMRC. I aim to file for bankruptcy in the coming weeks as the debts are out of control. I am self employed and a sole trader and wish to continue my trade once I am bankrupt. Should I file my final tax return(2021-22) before filing for bankruptcy to write this debt off too?

TripleH

Personally I would, simply so that you won't get chased in future for not filing the return. They will still chase it even if there is nothing to pay and not sure the penalties for non-filing would be covered.

You might have to estimate what you owe as an accountant may note you're insolvent and won't be happy working for free.

However others here might advise differently.

ToxtethO'Grady

If you still want to trade and go bankrupt I would suggest you speak to Business Debtline for the best advice on how to manage this.