| T O P I C R E V I E W |
| maizie |
Posted - 01 September 2008 : 11:11:03
I have just read this on the IVA forum...
Everyone who is on a L tax code with be better off this month as the personal allowance changes. We will all get a lump sum of 60.00 this month and then an extra 10.00 per month for the next 6 months.
Is this correct? I went bankrupt on the 15th August, OR interview on the 18th September... will they want this £60 from me?
Maizie |
| 15 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 03 September 2008 : 15:29:19
Indeed :)
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| BankruptC |
Posted - 03 September 2008 : 15:23:54
Hehe sorry to be a pain. I do think it's worth asking if you don't 'get it' though.
CG. x |
| JulianDonnelly |
Posted - 03 September 2008 : 15:19:45
Glad we cleared that one up then :)
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| BankruptC |
Posted - 03 September 2008 : 15:19:17
Excellent. That's all I need to know! :-)
CG. x |
| JulianDonnelly |
Posted - 03 September 2008 : 15:17:10
Tax will form part of an IPA (if you're on a NT tax code). However, that portion of the IPA will only be for as long as you're on the NT code. The net effect to you will be ZERO.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| BankruptC |
Posted - 03 September 2008 : 15:15:04
Hi 369,
No, you haven't confused me at all. That's exactly as I understood it. You said, 'They don't take into consideration your tax amount when working out the IPA amount for each month.' That's what I thought.
But then Julian's reply when I asked this was,'Indeed they will add the tax you usually pay when calculating out your DI'. This is what confused me. Did I misunderstand that?
Thanks again,
CG. x |
| JulianDonnelly |
Posted - 03 September 2008 : 14:57:57
Hi CG,
IPA's won't be at an unaffordable level. In your case, you may only get one for the period you're not paying tax (if at all).
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| 369 |
Posted - 03 September 2008 : 14:53:38
HI C G
Not sure if i am right, but i think that it is dealt with differently. They dont take into consideration your tax amount when working out the IPA amount for each month. Lets say you had a DI of £100, then they would work out an amount from that figure for you to pay back each month as your IPA amount, AND they may take some of the money that you pay as tax as well.
Instead of the tax going to the gov, it will go to the OR and then creditors.
I think I am right. Sorry if im not. I would just try and get your DI under £100 to start off with.
However, as a seperate thing, they may take your tax money, depending on when you go bankrupt. But you wouldnt see that money anyway as it is going to the tax man!
I went bankrupt in NOv 07, I havent had an IPA as my DI was under £100 a month (im hoping that i wont get one before Nov 08), and I havent had a NIL tax code either, so nothing changed for me. If its towards the end of the financial year they dont tend to mess around with your tax codes.
Hope i havent confused you further! |
| BankruptC |
Posted - 03 September 2008 : 13:08:45
Hmmm I'm still confused. So there's a chancethey will see my DI as £360 and not just £60 and make me pay an IPA accordingly? Dependent on which OR I see?
Or am I missing the point here? Sorry to seem so dim, but this all totally contradicts what I had previously understood.
CG. x |
| JulianDonnelly |
Posted - 03 September 2008 : 12:48:38
Hi CG,
Again, it's down to the OR's discretion as they all seem to handle things slightly differently.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| BankruptC |
Posted - 03 September 2008 : 12:43:58
I'm confused (easily done!). So if I usually pay, for example £300 tax, all that will be taken. But what if my DI (on I & E) is only £60? Would I then pay all my tax, just for the rest of the tax year, but no IPA as such?
CG. x |
| JulianDonnelly |
Posted - 03 September 2008 : 12:39:17
Hi CG,
Not necessarily. For instance, benefit payments can be discounted from your income as benefits are deemed as the minimum someone can live on.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| BankruptC |
Posted - 03 September 2008 : 12:32:51
Oh, so there's absolutely no point trying to get my DI down to under £99 as I pay way more than that in tax anyway?!
CG. x |
| JulianDonnelly |
Posted - 03 September 2008 : 12:31:09
Hi CG,
Indeed they will add the tax you usually pay when calculating out your DI. Remember an IPA/IPO can last UP TO three years and can vary in amount.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| BankruptC |
Posted - 03 September 2008 : 12:25:27
Hi Julian,
So are you saying they include the tax we would be paid as 'income'when calculating our IPA? What I mean is, if we usually pay more tax than £99 does that automatically mean we'll get an IPA? I always understood they were separate and that we'll pay our tax to the OR for the remainder of the tax year, and that also, separate to this, if we have DI of more than £99 we will have to pay an IPA too, as well as our tax. Is that not the case?
CG. x |
