Following bankruptcy, sometimes self assessment returns are still submitted using a Unique Taxpayer Reference (UTR) that is no longer valid. This may slow down processing and result in unnecessary additional tasks.

What you need to know

When a customer is declared bankrupt, their existing UTR expires at the end of the tax year in which they were declared bankrupt. That UTR must not be used for self assessment tax returns after that year.

The customer must register for self assessment again and get a new UTR if they:

• continue trading after the bankruptcy year
• need to complete a self assessment return at any point after that year.

This allows HMRC to keep the customer’s pre- and post-bankruptcy tax affairs separate and ensures future returns are processed correctly.

Common issue

When a tax return is submitted using the old, pre-bankruptcy UTR, HMRC must take corrective action which results in delays. By using the correct UTR from the start, it will help to avoid any delays.

What agents should do

• do not use the pre-bankruptcy UTR for tax returns after the bankruptcy year
• register the customer again for self assessment where needed
• ensure returns are submitted using the new UTR issued after registration.