Your tax code will change to NT (No Tax) for the year you are bankrupt and the money you would have paid is redirected to cover the Insolvency Service’s administrative costs. The only exception is if the bankruptcy takes place around late February / March, as these arrangements have to complete by the end of the tax year.
You will be told how and where to pay the money. Don’t be concerned about your company knowing about the bankruptcy, as there are many reasons why a tax code might change and they will not be given a reason.
If you are considering bankruptcy, we will help you throughout the process and submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us for a chat or for bankruptcy help on 01425 600129.