Hi dandydon and welcome.

If this HMRC debt existed when you signed your trust deed, and you now have a protected trust deed, there is nothing at all to worry about.

I suggest you ask your Trustee to contact them.

Great thanks for your help. I also have an outstanding self assesment for the tax year 2010-2011 to complete and i anticipate owing money as well. Is it possible to add this debt to my trust deed?

If the money was owed at the time you signed you should be fine.

I'd suggest talking to your trust deed firm to confirm this and so they can advise you how to proceed.

Was this 2010-11 return not discussed with your trustee prior to you entering the trust deed?

Paul

Hi
Any tax due up until the date of your Trust Deed should be included, and should have been addressed at the time of signing. This could have a huge implication for the other creditors and the dividend they are expecting.

The recommended course of action for a self-employed person entering a trust deed is to make up accounts for the tax year up until the date of signing the trust deed, and then start another accounting period for the rest of the tax year afterwards.

This way it is a lot clearer as to what tax liability is included in the trust deed and what is not. So not only is there 2010-11 to include but there would also be a chunk of 2011-12

The problem was not caused by me filing a return after being self employed. I have always been PAYE and the reason I was sent a self assesment was due to a discrepancy they received in connection with a P11D and benefit I was receiving from a company car. HMRC have sent me a self assessment for the last 3 years and it appears my tax code has been consistently wrong even although I have been PAYE and my circumstances hadnt changed in the 3 years.

That must be frustrating dandydon.

Hopefully you'll find that any money owed will pre-date you signing the trust deed and therefore be included amongst the other creditors.