| T O P I C R E V I E W |
| stressedoutsteve |
Posted - 16 August 2009 : 19:48:11
BR and tax (self employed). Hi, I went br this spring. I am self employed and have made aloss for the last three years, over 50K last year. I am now working(since BR) as aself employed salesman for a LTD Co and as they pay my expenses, provide acar etc will therefore probably earn about 15K this year. Normally I would not be liable for income tax due to losses in the last three years. Can anyone advise what will now happen? Obviously I have no savings etc as abankrupt, but will I still be able to get relief from tax this year due to previous losses despite BR or does it all start totally from scratch on the day after BR thus making me liable for tax on earnings? any advice would be welcome, thanks, steve. |
| 6 L A T E S T R E P L I E S (Newest First) |
| stressedoutsteve |
Posted - 17 August 2009 : 17:29:57
thanks suzanne, thought so but it was worth asking the question as tax law never makes much sense to me. I assume then that my 'new' business year/tax/etc starts the day after my Br? regards, steve |
| Suzanne |
Posted - 17 August 2009 : 16:57:53
I would expect your previous losses to not be allowed to offset income post bankruptcy.
If you imagine a different scenario where tax was due from prior to bankruptcy you would expect the tax due to be written off in the bankruptcy, so you can't expect to reap rewards where the opposite is the case.
Hope this makes sense.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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| debtinfo |
Posted - 16 August 2009 : 21:30:09
im not totally sure but as it is technically a new business and all previous debts have been included in the bankruptcy (and so dont exist any more)i wouuld think that they probably wouldn't |
| stressedoutsteve |
Posted - 16 August 2009 : 20:42:38
hi both. I was keen to know if my losses pre bankruptcy would be able to be set against tax post bankruptcy? My accountant has asked for dvice from hmrc but I wondered if anyone on the forum knew the answer. steve |
| debtinfo |
Posted - 16 August 2009 : 20:20:00
A NT code will not be applied as this is for PAYE people only. The current period of self employment is in effect a new business and not a continuation of the previous business. You should contact the HMRC and register the new company (if you havent already) and would pay your tax exactly like any other new business |
| qznhln1 |
Posted - 16 August 2009 : 19:54:55
I believe that you should be given an NT (Nil Tax code) for the year if your order was made after April. This is because the HMRC is one of your creditors and their liability is calculated until April next year.
However, the OR will want to take the Tax contribution you would have been making to distribute amongst your other creditors. The OR will also take any Tax refunds you are due. |
