We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Tax refunds
scootw1
Posts: 2,165 Forumite
Would I be right in saying that if you get a tax refund when you are bankrupt that the OR will automatically take all of the refund due to you?
0
Comments
-
I believe so Scoot. I put tax refund on my forms and when i had the Or interview he said that when it arrived i was to forward it straight to him (unless he intercepts it first)The first time we said hello, was the first time we said goodbye. As the angels took your tiny hand and flew you to the sky-you forever left us breathless. RIP my beautiful granddaughter
0 -
I just spoke to them and they said it would automatically go to them.0
-
I had a tax refund last month I had to send my payslip of to the OR to decide how much ipa to pay they have to date not mentioned that I have to give it to them :eek: I have already spent it so maybe fingers crossed its ok
Jo0 -
would that be the same for the new tax credit refunds ? where the government paid the wrong amount out and we were stopped silly amounts ? If so not worth trying to claim it back is it ???BR as of 26th April 2007 and feeling 10 years younger :T
If only ex could be sorted as easily :wall:0 -
desperate_mum wrote: »would that be the same for the new tax credit refunds ? where the government paid the wrong amount out and we were stopped silly amounts ? If so not worth trying to claim it back is it ???
No, not at all. You get to keep these.
Your OR can ask for you to voluntarily surrender them, but why on earth would you? The OR can't take them away from you.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
Someone ion DebtQuestions said that the tax refund for the year after bankruptcy is not claimable by the OR. Can someone clarify this for me? I went BR in February so part of the tax refund would be from then until now.0
-
Sounds wrong to me, but I'm only going according to what is stated below.
and31.7.14 Tax refunds
The bankrupt may receive tax refunds for periods both before and after bankruptcy. Tax refunds paid to a bankrupt for periods prior to the bankruptcy order date and for the tax year in which the bankruptcy order was made can be claimed using the bankrupt's duly completed Income Tax and National Insurance disclosure authority (form TNIDIS), see also Chapter 77, Direct Taxation, paragraph 77.22, Information available from HMRC.
Any refund in respect of tax years following the tax year in which the bankruptcy order was made may be claimed by means of an income payments agreement/income payments order (IPA/IPO) where the bankrupt remains undischarged. The IPA should clearly state what is being claimed and the IPA agreement accepted and signed by the bankrupt and the official receiver/trustee prior to discharge in order for it to become valid (see paragraph 31.7.2) If the bankrupt fails to agree the IPA/give consent the trustee may still recover the tax refund by applying for an IPO (stating clearly in the IPO application what is being claimed) as long as the application is instituted prior to the date of discharge [note 9].See also Chapter 31.5. Monetary Assets, Paragraph 31.5.71, Tax refunds - bankruptcy, and Chapter 77, Direct Taxation, paragraph 77.62,Tax refunds and set off.
In the end you should just ask your OR. If the amount isn't too big they might not bother.In the event that, prior to discharge, a tax refund becomes due to the bankrupt in respect of tax years subsequent to that in which the bankruptcy order was made this should be claimed by means of an income payments agreement or income payments order. An income payments agreement or income payments order may either be sought in respect of this "one off" payment or where an agreement or order is already in force an agreement to amend it should be made with the bankrupt or an application should be made to the court for the order to be varied to include the payment of the tax refund by the Inland Revenue to the official receiver, as trustee.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
Well, like I say, they have told me I won't even see the money as it will go straight to them, making me wonder why I am even bothering to apply for the refund.0
-
I've just had a thought. If I don't bother sending my P60s in, will the tax even itself out by the end of the year due to my tax code changing, i.e. will they notice I've paid more than I should have and just lower the tax later in the year? Either way i do it, I'm not going to get the refund but if I don't apply for the refund perhaps I will get a lower tax bill later in the year?0
-
Well after yesterdays comment i got a letter this morning from the tax office, basicly saying they can't be bothered to chase this up. The company i worked for doesn't exist ( ohh yes it does and i've told them this many times, given addresses etc) So now no one gets the tax rebate.The first time we said hello, was the first time we said goodbye. As the angels took your tiny hand and flew you to the sky-you forever left us breathless. RIP my beautiful granddaughter0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.6K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.9K Spending & Discounts
- 244.6K Work, Benefits & Business
- 600K Mortgages, Homes & Bills
- 177.2K Life & Family
- 258.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards