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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Can anyone help me from being declared bancrupt by HMRC?

Customer Question

Hi, Can anyone help me from being declared bancrupt by HMRC? the are supposed to collect taxes, but they wont listen & seem intent on bancrupting me & achieving nothing financially for them, as I have very little they can take, if anything. Can anyone help?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you.
-Could you explain your situation a little more?
Customer: replied 2 years ago.


HMRC are proposing to serve a Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. They are claiming just over £85,000.00.

I did havean arrangement in place with them to pay £1500.00 per month & that failed late last year due to losing my business & subsequent illness.

After a horrendous divorce, I keep trying to move forward, but take two steps forward & three back. I was going to contact HMRC to try to come to a resolution, but I think my ex father in law gave them an address & they turned up all guns blazing & left a slightly terse letter.

They have had my mobile number & my email address & have not tried to contact me whatsoever since I last spoke to them. I would prefer to pay my dues over say ten years, but they need to be realistic & also take on board that circumstances can change.

I have no assets really now for the time being until I rebuild, but I have pride & I would prefer to get them to realise that nothing means nothing & a monthly payment over ten years is money for the treasury to utilise.

I hope these comments are some assistance. Mark.

Expert:  Ash replied 2 years ago.
Do you accept you owe the money Mark?
Customer: replied 2 years ago.

Hi, without a breakdown, I cannot say for certain. However, it sounds about right, but the addition of lots of fees & interest has not helped.

I have found that if an MP gets involved, they start to listen & otherwise they do not. I do not dispute that tax is due, but recovering nothing as opposed to thirty odd percent over ten years is silly. I do appreciate that many people would just go bancrupt, but I feel I should get a chance to pay as much as I can & so on.


Expert:  Ash replied 2 years ago.
Its bad news I am afraid. They can make you bankrupt because you accept you owe the £. The process is they issue a statutory demand - you can set that aside if you have a genuine reason.
Once that is dealt with they can petition for you to become bankrupt. The only thing you can do is consider a Judicial Review. This is where a Judge considers what HMRC are doing and sees whether it is legal and reasonable. A Court can examine the decision and either agree with the decision or remit it back to HMRC.
An MP won't necessary help, but you can stop the process with a Judicial Review.
Can I clarify anything for you about this today please?
Expert:  Ash replied 2 years ago.

I am just following up to see if there is anything else I can help with?

If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.