Simple Assessment Letter

Mart7379

Hi guys 
Today I have recieved a Letter from the HMRC stating I have not paid tax during my bankruptcy. But, my understanding was my tax was paid to the Bankruptcy? 

What's are my options? I've sent an email off to the people I'm paying my IPA to as I can't find contact details for my bankruptcy. I was discharged April 2022 

According to the letter it was from tax year period ending April 2022

kevker23

My understanding is, if you are PAYE, then you would have received a new tax code, so no income tax would be takien at source and would have been paid in your wages. You should then have paid this to the OR who would use that money to offset debts. You would need to look back through your payslips and see what if any tax was deducted from your pay, it should have been none during your bankruptcy.

luvchocolate

My tax was not deducted during the BR before discharge...I had to set up a SO to pay it to my trustee 

Mart7379

kevker23 said:

My understanding is, if you are PAYE, then you would have received a new tax code, so no income tax would be takien at source and would have been paid in your wages. You should then have paid this to the OR who would use that money to offset debts. You would need to look back through your payslips and see what if any tax was deducted from your pay, it should have been none during your bankruptcy.

Yes my tax code was changed once I was declared bankrupt and I paid the tax I should of paid to the HMRC to the OR along with the IPA

I have emailed my 1st Point or contact in regards to the matter however I am still awaiting a response. Think I'll chase it up tomorrow before I get hmrc knocking at my door. 

kevker23

It may just be a standard letter, confirming you didn't pay any tax during your bankruptcy. I've just had a letter through stating that I paid tx for one month (i was declared bankrupt early March) and the HMRC will send a check to the OR for the amount. It may just be for your records. But as you say, It's always best to check

Mart7379

kevker23 said:

It may just be a standard letter, confirming you didn't pay any tax during your bankruptcy. I've just had a letter through stating that I paid tx for one month (i was declared bankrupt early March) and the HMRC will send a check to the OR for the amount. It may just be for your records. But as you say, It's always best to check

Yeh I had a letter right at the beginning of my Bankruptcy that stated exactly the same. But this letter states I owe nearly £3k in unpiad tax and I must pay immediately, this is unpaid tax during the year of my bankruptcy when I was put on an NT tax code by HMRC in accordance with the Insolvency service requirements. I've been in touch with the Insolvency service and they didn't have a clue how to advise other than get in touch with HMRC themselves................. something that is easier said than done, been trying to get through to someone since 12.30pm this afternoon, thought I'd finally succeeded at 14.20pm until they put the phone down half way through the call, something I would expect if I was shouting and screaming at them, I wasn't. I was when i realised they put the phone down!!! 

Mart7379

FINALLY MANAGED TO SPEAK TO SOMEONE, I wouldn't wish having to speak to HMRC on my worst enemy, very friendly people once you get through but by god its mentally draining, just listening to the music they play you while waiting to speak to them is enough to throw yourself off the nearest building!!!!

Anyway, apparently I should never have received the letter in the 1st place. According to their system, there is a note on my tax account stating I was Bankrupt between the tax year it refers to, and another note placed on there today stating I do not owe anything due to my Bankruptcy NT code. Any tax owing from the Insolvency service or any over payments to be refunded to me should have been dealt with by them. 

kevker23

Good to hear it's all sorted out. Butr probably a stress you didn't need. As you say, once you get through to HMRC I've always found them nothing short of excellent, it's just the waiting for 10 years to get through thats the hard bit