I am really confused and don't understand where I am with my tax liability at the moment. I went bankrupt on 20th October 2008 and was informed by the experts that any tax liability before this date, would fall into my bankruptcy and I would not have to pay it.
Having completed my tax return for April08 to April09 the tax office have sent me a bill for this period, and know seems to be able to tell me at the tax office if this is correct because i went bankrupt on 20th October 08. After being told that I would not have to pay any tax prior to my bankruptcy date 20/10/08, should I then be liable for tax from 21/10/08 or how is it worked out.
As it stands at the moment I have a bill for £4000 to be paid by the end of January 10 but it includes tax on my income from April 2008 to October 20th 2008 which was my bankruptcy date.
Can anyone tell where I stand on this and should I have to pay tax on my income prior to my bankruptcy date.
The tax prior to the bankruptcy period will be included in the Br.
Tax due from the bankruptcy period until the new Tax Year should be payable to the official receiver ( this is similar to the NT tax code ). Tax after this should be paid in the normal way.
Therefore it is helpful if your bookeeper can separate out the tax prior to Br and Br to March 09, so that we can get the right people to recognise the correct liabilities.
Perhaps you can pop the Tax demand in the post and I will attend to .
Thanks for your reply. I do my own accounts so fill in my own self assesment tax forms as it is so simple. When I spoke to the inland revenue I made them aware of my bankruptcy and they told me to fill in my tax form as usual and they would sort it out. It does not seem as if they as happened. So still confused.
Tax Due prior to bankruptcy
Posted - 21 December 2009 : 13:54:07
