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T O P I C R E V I E W
b_n
Posted - 27 August 2008 : 21:49:58 Hi folks,
Forgive me if I'm being thick here but why will my tax code revert to NT (No Tax?) when I go bankrupt?
Will bankruptcy affect the way my tax is deducted?
2 L A T E S T R E P L I E S (Newest First)
b_n
Posted - 27 August 2008 : 22:47:06 Thanks for that John ... at least when/if it happens I'll know why.
John
Posted - 27 August 2008 : 22:36:59 Hi bn
if you file for BR between April 1st and December 1st and you are in an employed position then your tax code will change to NT.
This code will last until a) you change your job, or b)31/03 of the following year.
This is so that what would have been your contributions to income tax can be passed by the OR to your creditors.
If your BR is between 01/12 and 31/3 then it usually doesn't happen as the time it takes to organise in relation to the amount of payments you would make it is deemed unworthwhile.
If it does happen then your net income will of course increase by the sum that should have been paid in tax.
Clarke Willmott are responsible for collecting these funds from you each month on behalf of the OR.
