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jelly110
Junior Member
171 Posts |
Posted - 26 April 2010 : 14:40:47
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I was declared bankrupt in february 2008 and discharged a year later.The official receiver said they would have my tax refund for year 06/07 which i understand and then when i done my tax return for 07/08 recently they have taken that too. Is that allowed and also can i claim the expenses for my accountant that i have struggled to pay to get the refund in the first place.also I have rung the OR today and not been able to talk to my case officer but her colleage says my case is reopened any idea why? this just concerns me as they didn't want to discharge me as i complained about their service. I feel this is a witchhunt. please help. thanks |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 26 April 2010 : 14:56:11
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Hi Jelly
It is normal for any tax refunds covering the tax years prior to your bankruptcy to be claimed by the OR. The tax year runs to the end of March, so if you were made bankrupt in February, any refund due to March of that year would be claimed.
However, usually the cost of obtaining the refund (i.e the accountant's charges) would be payable out of the refund so I would take that up with the OR.
There could be any number of reasons why your case has been re-opened, and it could simply be that, due to the tax refund, there are funds to pay a dividend to your creditors - again I would suggest asking the OR to explain why it has been re-opened, and whether or not it affects you in any way
Good Luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
Edited by - Bridgewood on 26 April 2010 14:57:16 |
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jelly110
Junior Member
171 Posts |
Posted - 26 April 2010 : 15:35:06
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thanks for response bridgewood. Ihave had a lengthy conversation with the receiver since and explained to them that I had paid for them to receive my refunds, and they said thats something I should take up with my accountant! I asked for them to pay my fees and they refused and said I had to do my accounts anyway which is true, but I'm unemployed and I paid for the accounts to be done so I could receive the refund, so as to speculate to accumulate if you see what I mean. So I've paid £400 to my accountant so the receiver can get his money and I couldn't afford it in the first place. There is something not right here! Is there anything I can do because as I have explained to them they know the rules and I don't so they can do what they want. Is there any way I can complain and make a claim? |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 26 April 2010 : 17:02:38
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Hi,
What you have described sounds unjust.
I can, of course, see the ORs position as they will want to get as much as they can for the creditors - that is their job.
I also see your accountants point of view as s/he wanted to be paid for the job they were asked to do.
You may wish to make a formal representation to the OR - you have every right to - but I suspect from what you have set out, they have done what they are there to do.
You may wish to ask your accountant whether s/he would let you have some of their fee back and explain the situation to them. Are you still self employed and using this accountant?
I do wish you well as whichever way you look at it, you have lost out and that is par for the course, I guess.
Good luck, Richard
quote: Originally posted by jelly110
thanks for response bridgewood. Ihave had a lengthy conversation with the receiver since and explained to them that I had paid for them to receive my refunds, and they said thats something I should take up with my accountant! I asked for them to pay my fees and they refused and said I had to do my accounts anyway which is true, but I'm unemployed and I paid for the accounts to be done so I could receive the refund, so as to speculate to accumulate if you see what I mean. So I've paid £400 to my accountant so the receiver can get his money and I couldn't afford it in the first place. There is something not right here! Is there anything I can do because as I have explained to them they know the rules and I don't so they can do what they want. Is there any way I can complain and make a claim?
"There are no problems - only solutions" |
Edited by - Housing on 26 April 2010 18:39:18 |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 27 April 2010 : 11:30:48
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Hi Jelly
I agree it is unjust, but, other than put your comments in writing to the OR and ask them to reconsider their decision I suspect there is not much legally you can do after the event.
Technically I think the OR is wrong (although I am not an expert in tax law!) - you have to submit a tax return, although it can be argued that, as you have gone bankrupt, and have ceased trading, why would you? and in a lot of cases this requirement is waived.
But I'm not certain you actually have to submit accounts having gone bankrupt and ceased to trade - in an ideal world you would, but I'm not sure that you have to. If the OR requested accounts from you (for example to obtain a tax refund) then you have a duty to co-operate and comply with the request, but it would usually be agreed between the OR and accountant that the accountant's fees would be payable out of the refund.
The problem here is that you have instructed the accountant, and paid him, the OR has received the benefit at no cost, and you have incurred the cost for no benefit.
I think the OR is, strictly speaking, within his rights to retain the full amount, but it is unjust
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
Edited by - Bridgewood on 27 April 2010 11:49:08 |
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