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Tax underpayment because of Bankruptcy
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Mart7379
Posts: 207 Forumite

Morning Guys,
Recently received a letter from Tax Credits, stating we have to pay back an over payment, which is fine. I'm happy to do so. However when i recently logged into the Gov.uk Gateway, its telling me I have underpaid my Tax by over £2k. during which I can only assume originated from my Bankruptcy between April 2021 and being Discharged in April 2022.
Obviously during the period of Bankruptcy you pay the tax you should be paying to the OR?
I have no prior knowledge of there being Tax arrears. And had absolutely no letters stating I need to pay it. Is this normal for my Tax to be showing as in arrears ? is there anything I need to do?
Thanks
Martyn
Recently received a letter from Tax Credits, stating we have to pay back an over payment, which is fine. I'm happy to do so. However when i recently logged into the Gov.uk Gateway, its telling me I have underpaid my Tax by over £2k. during which I can only assume originated from my Bankruptcy between April 2021 and being Discharged in April 2022.
Obviously during the period of Bankruptcy you pay the tax you should be paying to the OR?
I have no prior knowledge of there being Tax arrears. And had absolutely no letters stating I need to pay it. Is this normal for my Tax to be showing as in arrears ? is there anything I need to do?
Thanks
Martyn
0
Comments
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Not sure about your tax situation, but regarding the tax credits, did the debt pre-date your bankruptcy, if it did, it would be vested in it, and you should not be paying it.
If it was accrued after you became bankrupt, then you will be liable for it.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
sourcrates said:Not sure about your tax situation, but regarding the tax credits, did the debt pre-date your bankruptcy, if it did, it would be vested in it, and you should not be paying it.
If it was accrued after you became bankrupt, then you will be liable for it.
I will get in touch with the bankruptcy team and find out as during ba kruptcy my payments to the IPA were made up of tax contributions and surplus income.0
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