| T O P I C R E V I E W |
| jayne1970 |
Posted - 24 February 2009 : 19:11:23
Please can anyone explain.....? I've seen several postings with reference to tax codes, and not sure what happpens, and how it would affect me?
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| 6 L A T E S T R E P L I E S (Newest First) |
| jayne1970 |
Posted - 24 February 2009 : 20:30:49
I think we're there, still looking into DMP with payplan after refusal of IVA proposal, but don't really think that's a viable option. Think we need to draw the line, before I drive myself, and or my husband mad.......
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| John |
Posted - 24 February 2009 : 20:26:26
Hi jayne
yes as long as everything else is ready and in place as required.
timendi causa est nescire
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| jayne1970 |
Posted - 24 February 2009 : 20:20:15
Clearer thanks, so I guess it would just be one less problem to deal with if we were to resolve before new tax year.
Jayne
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| John |
Posted - 24 February 2009 : 20:08:56
Ok
if you declare bankruptcy, for example in April, you will in time (usually a few weeks) be given an NT tax code (Nil Tax).
The Tax office will write to your employer informing them of the code change.
There are a number of reasons why NT tax codes are applied so this does not alert your employer to your bankrupt status.
From that point until end of March in the same tax year (Mar 2010) you would no longer pay income tax from your salary, therefore by definition you will have extra money in your wage packet.
However, this extra money is not for you and must be set aside for collection by the OR's (or trustee's) appointed collector (probably Moonbeever).
I hope I have made it a little clearer, if not please ask away.
timendi causa est nescire
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| jayne1970 |
Posted - 24 February 2009 : 19:35:55
Thanks John
Still at the shall we sharnt we stage, so obviously my next question is how will it affect me if I don't declare bankruptcy before April.
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| John |
Posted - 24 February 2009 : 19:29:06
Hi Jayne
if you are planning to declare bankrupcy before the end of March then this issue won't affect you at all as there would not be sufficient time to deal with it within this tax year.
If you are planning bankruptcy from April onwards that's a different kettle of fish.
timendi causa est nescire
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