SELF EMPLOYED IN UK: what happens if my bank goes under, with all the money in it due for tax?

Question

hi. In january I will have to pay £100'000+ tax bill to the government. Out of interest, if the bank where it is held goes under .... and I can't possibly pay the tax bill, what would happen?

Answer 1

you still owe it.  Its not the taxmans problem, its yours.  They have very little simpathy.  Move your money if you suspect this could happen.

Answer 2

At least the government will get the £35,000 guaranteed by the FSA!

I think it is SO unlikely that the government would let a major bank actually fail. Just look at the lengths they went to with Northern Rock, just to keep it running.

(I do wonder what you do to have to pay £100,000 in tax. But then I am very nosy!)

Answer 3

I think you are putting yourself in a unreal life kind of a situation. Also in the history of the banking industry, there was never a situation where a bank had gone under. There was a run on Northern Rock and the government bailed it out. Banks have merged and have been acquired but none have actually gone under. Your question do not make much sense.

Answer 4

The government under writes all deposits and it would be protected (as with Northern Rock)

Answer 5

Like jimpelic says - you'd have a problem!  HMRC could take (nearly) all your assets.

If you are seriously worried, rather than just idly curious, the safest place to invest your tax money is with HMRC themselves - they won't go bust!  See http://www.hmrc.gov.uk/howtopay/cert_tax...