HMRC comes first .... I think

tiger5000

Hi all,
Just wondering about something. I'm meeting the OR next week, and they're going to see that I owe HMRC around £2500 for corporation tax.
Obviously, debts with HMRC don't go away, so I'm just wondering whether the fact that it is so much, and any monthly repayments I begin making will easily consume any spare cash I might have, whether they're just going to think, "hey - this guys got nothing, may as well discharge now".
Am I being overly simplistic and unrealistic?
Nice thought, though!

fiveyearplan

Debts to HMRC do go away with BR. They are not treated any differently to other creditors.

tiger5000

Oh! Thats weird. When I spoke with my OR recently, he mentioned that things like parking fines don't go away. I'm surprised that parking fines stick around, and HMRC goes away. I'd have thought that the government would look after themselves under BR laws.

tigerfeet2006

The HMRC are one of biggest culprits for making people BR so they don't really care what they get back from people . Our money at work :rolleyes:

peachyprice

Parking fines issue by a local authority can be included, ones issued by the police cannot.

HTH

maxmycardagain

if its corporation tax, and seeing as BR is "personal", does a personal BR wipe away HMRC's demands for corporation tax, they would have to chase directors of the Ltd company, if there were any that were non-BR i feel HMRC would go after them EACH for the WHOLE amounts due, so say the BR and his wife/partner were directors i thing HMRC will hunt down the non-BR's.............

rog2

tiger5000 wrote: »

Obviously, debts with HMRC don't go away

Since it as HMRC who petitioned for my bankruptcy, over an 'alleged' tax debt of £63k plus charges, I sincerely hope that it 'went away'.
Seriously, though, as already said, HMRC does not get any preference by the OR/Trustee, whose job is to divide any proceeds from your 'estate in bankruptcy' equally amongst your creditors. Once upon a time, Crown Debts may have had some preference, but certainly not anymore.
The only thing that worried me was that the OR told me, at my OR interview, that since HMRC were my largest creditor, then they would be invited to nominate a 'trustee' of their choosing. However, I was also assured that this would not give HMRC any preferential 'status' over any of my other creditors.

JCS1

HMRC did use to get preference, but was changed in the Enterprise Act of 2002

JCS1

rog2 wrote: »

The only thing that worried me was that the OR told me, at my OR interview, that since HMRC were my largest creditor, then they would be invited to nominate a 'trustee' of their choosing. However, I was also assured that this would not give HMRC any preferential 'status' over any of my other creditors.

This is correct, aby majority creditor can nominate an IP to be appointed via Secretary of State appointment - rather than going to cost of calling a meeting of creditors.

tiger5000

Thanks for your replies. I have obviously been misinformed about debts with HMRC ... still, this just means that none of my creditors will get anything as I simply don't own anything, or earn enough.
What a shame that those with the grudge, who filed the petition, have forked out as much as they have, and cleared all my debt, with them, and everybody else, immediately.

maxmycardagain

have a word with em, see if they will petition me for BR, HMRC have taken a CCJ out for £9000 off me, may as well try for £9,000,000