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T O P I C R E V I E W
shez
Posted - 15 April 2008 : 06:32:05 we are in the process of going bankrupt we have heard that your tax code goes back to zero why is this and how will it affect our wages
1 L A T E S T R E P L I E S (Newest First)
melanie_giles
Posted - 15 April 2008 : 09:54:14 Your tax code reverts to 0 during your first year in bankruptcy, and lasts until the end of the tax year ie 5 April of the next year. This is becuase there is no tax payable in a bankrutpcy to HMRC in that period as all tax is deemed to be a claim in the bankruptcy. You will receive your wages gross, and have to pay the tax and NI element to your Trustee by way of ongoing contributions, which will stop at the end of the tax year.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
