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Scottish Trust Deed Forum
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Topic starter
14/12/2012 2:21 pm
I have been self employed for nearly 10 years (although now my main income is not from my self employed work any more) I paid tax bills twice a year in January and July. I signed trust deed in July last year. I got a letter from HMRC in November 2011. I cant rememeber exactly what it said, but did say something like "we know you are have been made bankrupt" I phoned them and explained I was actually in a Trust Deed, and was told as far as tax is concerned it is the same. Since then I have not received any tax bills until today. It says I am due to make a balancing payment of £903.52 by 31st jan 13. I dont have money to pay this. I once previously (prior to trust deed) was unable to pay tax bill in full and HMRC allowed me to make monthly payments for a few months. However if I was to do this now I would not be able to make payments to Trust Deed.
Any advice?
14/12/2012 3:16 pm
Was there not an allowance made in your budget for income tax payments? Your trust deed contribution should be based on what is affordable after payment of tax.
Also, it might be worth checking that they are not seeking payment for any period prior to your trust deed being signed.
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Topic starter
14/12/2012 3:51 pm
It is balancing payment for year 11/12. I didnt receive any requests for income tax last year. My accountant said I wouldnt have any tax to pay in January so I guess I need to contact them.
14/12/2012 8:52 pm
Hi fcwalker.
I agree, hopefully your accountant can get this straightened out for you.
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15/12/2012 3:00 pm
From my experience the HMRC will look for a final tax return up to the date of the "bankruptcy" any tax due before that date will be included in your trust deed you will be effectively starting from scratch in July last year so there should only be tax due for July2011 to April 2012 and normal tax from then on if you paid tax in July 2011 then that should roughly cover the entire commitment for that year your new tax affairs should start August 2011
Topic starter
18/12/2012 10:20 am
Thanks on track, that makes sense. I wish somebody at KPMG or HMRC had explained that to me!
Topic starter
18/12/2012 10:22 am
I didnt earn anything between Aug 11 and April 12 so not sure why I should have anything to pay then
18/12/2012 10:26 am
Hi fcwalker.
It sounds like this could be tax that HMRC expects to be due based on what has happened in the past.
Assuming that this is the case it should be quite straightforward for your accountant to demonstrate to them that it isn't.
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