Bankruptcy and the inland revenue

[forever3]

Hi can anyone assist me please /

I have been self employed on and off for a number of years,I know it is wrong but as time went by i just went on with my daily routine.I haven't registered for income tax.I have had a letter from the hidden economy team from my local hmcr office.I have serious financial problems with my home on a suspended repossession order amongst other creditors.My question would be If I was to declare myself bankrupt should i inform the revenue office of this first or should i wait until my case has been heard in the bankruptcy court?.I had many reasons for not registeringwith the revenue office mainly to do with being able to pay my mortgage.Would this be viewed as tax fraud ?

Forever3

[FindLaw_Miriam]

Hi forever3

It sounds like you are in a complicated and precarious situation.

There are a number of serious issues to consider here – your home is obviously your main priority and you should be aware that if you apply for bankruptcy and the court declares you bankrupt, you may lose your house anyway. The bankruptcy trustee appointed to your case can sell your home in order to pay back your creditors if necessary.

In relation to your unpaid income tax and the letter from the Hidden Economy Team, you should be aware that if you can pay what you owe, or can come to a satisfactory arrangement with them, they are unlikely to pursue you for tax evasion (which is defined as the deliberate failure to pay taxes).

You can call the National Debtline on 0808 808 4000, or alternatively, you can speak to a specialist solicitor about whether bankruptcy is the best option for you, and the letter from the hidden economy team.

Good luck,

-FindLaw Moderation Team