I owe a lot of money to HMRC, £25,000 plus. This came about due to my business going under when the Covid crisis began. I could not longer trade and could no longer pay my bills.
In total I owe around £60,000.
I have spoke with HMRC and they said they could make me bankrupt, but I told them I have nothing.
If they can make me bankrupt, can I make myself bankrupt and include the taxes I owe?
I am sorry to hear about your company, the pandemic has caused a lot of businesses to go under.
Yes, you can include taxes owed to HMRC in a bankruptcy. If you have no assets of property, bankruptcy is an option.
As to if HMRC would make you bankrupt and pay the fees to do so, HMRC only accounts for a small percentage of bankruptcies filed by creditors, so chances are they will not make you bankrupt.
The debts you cannot include in bankruptcy are:
- Any debts incurred by fraud
- Child maintenance
- Student loans
- Court fines
- Damages owed due to injuring someone
- Any debts created after you filed for bankruptcy