income tax during the one year bankrupt period

[gill]

So who do i pay my years tax to .My accountant has not mentionrd any of this to more nor has the offical receiver.

[scaredkez]

getting a nil tax code all depends on when you went BR, if it was the end of march beginning of april before the financial year end, a nil tax code will not apply, if you do get put on nil tax code, you receive your tax in your pay, you will then be contacted by clarke willmot asking for your wage slips so they can determine what the tax is payable and then you will forward it on to them, do not spend it!!!
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[gill]

this is getting very confussing i have been released from bankruptcy on april 27 ,and know one is prepared on an offical basis please can someone help.

[scaredkez]

gill have you got your wage slips to hand to see if you were ever put on a nil tax code, where you working when you went BR or changed jobs in the BR period?
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[gill]

I am self employed

[gill]

My tax returns were done by my accounted as usual and accounts drawn up the same as every other year

[scaredkez]

sorry gill should have realised when you were talking re accountant, as far as i am aware, nil tax code is only applied if you pay tax under PAYE
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[gill]

so how do i stand as a selfemplyed person

[scaredkez]

gill this is what i have dug up so far hope this helps if not it may be best to speak to the OR who dealt with your case to at least ease your mind.

Tax after bankruptcy

As a general rule, the tax due for all tax years up to and including the tax year in which you are made bankrupt will be due from your Trustee - from the money he is able to raise - and not from you personally.

So if you are employed and paying tax under Pay As You Earn (PAYE), you should ask your tax office to put you onto a 'Nil' tax code immediately after the bankruptcy order. You should then be paid without income tax taken off for the remainder of the tax year. If for any reason this does not happen, and some tax is deducted after bankruptcy, this should be refunded to you by HM Revenue and Customs. However, if you move to a different employer, this rule ceases to apply and tax should be deducted on an 'emergency' basis.

If you are self-employed, your duty to pay tax directly to HM Revenue and Customs will no longer apply to the tax year of bankruptcy or any previous year. You start paying tax directly from the following tax year.

One exception to the last rule affects self-employed workers in the construction industry, who have tax taken off their earnings at a flat rate of 18%. This deduction continues after bankruptcy, and the amounts that are deducted between your bankruptcy order and the following 5 April are paid by HM Revenue and Customs to your Trustee.

Further information and advice

There is much useful information available from the government's insolvency services. Contact details are as follows:

For Scotland: The Accountant in Bankruptcy; PO Box 8313, Irvine, KA13 2AA.
Tel: 0845 762 6171 website

For Northern Ireland: The Insolvency Service, Fermanagh House, Ormeau Avenue, Belfast BT2 8NJ Tel: 02890 251441 website

For England and Wales: The Insolvency Service

The Insolvency Service publish a Guide to Bankruptcy

Copies of this and other leaflets are also available by phoning Insolvency Service Publications: 01254 682702 or by looking on their website.

The Bankruptcy Advisory Service is also a good source of help and information. They can be contacted on 01482 633 035. They make a small charge for their services.


kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[gill]

Thanks for all your help i can now sort things out with my accountant