I received a letter from the tax mand 2 months ago advising me that I was due a tax rebate for 2008/9.
I have now received another letter telling me that this is not the case, as it will go to my bankruptcy.
Can anybody tell me if this is the case?
I was declared bankrupt in 7th July 2008 and discharged on 15th January 2009.
I was unemployed when I filled for bankruptcy, then had 1 weeks temporary employment, before becoming unemplyed again for a few months (In total I had 3 employment periods from 7th July to the end of the tax year).
The tax man has told me that my rebate will go to clear off my arrears, but how is this the case when my rebate did not become due until April 2009 and any arrears to the tax man should have been written off on 15th January 2009 - surley my rebate should have nothing to do with my bankruptcy - otherwise the tax man could just super tax every bankrupt to get as much money from them as possible?
Yes, any tax rebates before you are discharged are automatically paid to the OR. You would have signed a TNIDIS form when you were first declared BR and this form allows HMRC to provide the OR with tax information and also pay any rebates directly to the OR.
Normally during the tax year you are BR you would have a NT tax code, which would mean you wouldn't pay income tax but would pay it to the OR instead. It doesn't look like this has happened in your case possibly because of your periods of unemployment.
Tax rebate after bankruptcy
Posted - 01 September 2009 : 10:08:27
