Question

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?

Justin

Answer

Justin,

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:

Regards,

Jon

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