Author Topic: Tax refund  (Read 1381 times)

ctracycam

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Tax refund
« on: Dec 18, 2011, 07:34:27 PM »
My partner applied for bankruptcy last year, he does not have a payment agreement in place as he is self employed with a very variable income. When he files his self assessment does all the refund go to the official reciever??

James Falla

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Re: Tax refund
« Reply #1 on: Dec 19, 2011, 02:49:32 PM »
Hi there. Is your partner still bankrupt or has he already been discharged? If he is still bankrupt then a tax refund is classed as a windfall and he must declare it to the official receiver. The OR will then decide if it should be paid into his bankruptcy estate or not. If he has been discharged, then any windfalls he receives he can keep.
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ctracycam

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Re: Tax refund
« Reply #2 on: Dec 20, 2011, 11:13:57 PM »
Thanks so much for that information.
My partner got the bankruptcy order in April 2011 and is not yet discharged........ one more question  he was told that the tax office would be notified of the bankruptcy and the UTR number he uses will no longer be valid after this current tax year 2011/12 and that a new one will then be issued. Does this mean that they (OR office) now have 'control' of the UTR number and any refunds due or will the refund come directly to my partner which he will then in turn declare to ORs office ??

James Falla

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Re: Tax refund
« Reply #3 on: Dec 21, 2011, 12:41:07 PM »
Hi there. It is possible that HMRC will be organised enough to forward any refunds direct to the official receiver. However I would not count on this. If he receives the refund personally (which is likely if one is due) he will have to pay the cheque into his account and then forward these funds to the OR himself. To be absolutely sure, he should have a chat to the OR and let them know of the possibility of a refund of tax. They will then tell him exactly what they want him to do. Its always best to have a good open dialogue with the OR.
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ctracycam

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Re: Tax refund
« Reply #4 on: Dec 21, 2011, 10:45:50 PM »
Once again ........ thanks a million for the information :-)

James Falla

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Re: Tax refund
« Reply #5 on: Dec 23, 2011, 11:43:13 AM »
No problem at all. If you have any other questions please don't hesitate to ask :)
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