| Author |
 Topic  |
|
indy2005
Junior Member
458 Posts |
 Posted - 25 August 2008 : 23:48:48
|
Hi,
4 months down the line and no IPA so we are living as normal for a while. I am conscious of the letter I received when I went BR stating that no money should be spent on anything other than basic essentials or I could be prosecuted.
My salary goes into my wifes account, and over the last few months we have enjoyed the quiet before the storm (no IPA, no debt payments), and have used some cash to spend on holiday, we bought a roofbox for the car, a new Dyson etc. Are these OK (they came out of my wifes account.....but I earn 3x what she does)..will this even be questioned? i.e. will they expect the IPA to be backdated, or is what I spend my money on now up to me in the absence of an IPA.
Regards
i
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 26 August 2008 : 08:57:27
|
Hey Indy,
I am not sure on that one, i would have thought unless told at interview that you may have to put aside say £100 per month for an IPA then im clueless.
When we had our interview she only told us that we would NOT be paying anything till the set up an IPA and then it would start from there.
Unless it means that you dont get credit, DERR! and also dont pay your creditors so then what you have will be yours.
We have just enough to live on per month, and we dont have any savings either, I had to use £300 recently to insure the car for the year as our ins ran out and we thought we would look around and no one would take us on a monthly basis so had to pay cash to my dad then he used his card to make the payment.
They have what is available at the time of BR so if you had say £500 in the bank they have that, but im not 100% sure on the "What is mine" bit.
As i said though, the IPA is not backdated and starts when the OR informs you, that could be months down the line but they have until discharge to instigate an IPA or even an IPO if you contest it and that is when you start paying the money they agree with you.
You must also keep what TAX you may have paid to one side, that is NOT yours and you need to try and work that out, as they will want that back.
Hope I helped a bit, oh and good luck
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
 |
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 26 August 2008 : 11:06:37
|
| I would be interested in hearing on this also, I am already almost a month in from BR and no news about my IPA yet or what I got to pay. Confused though what do you mean keep the tax you have paid to one side? Until my IPA is all sorted out I guess it still goes to the tax man I am not receiving any tax money as all not sorted yet, so I guess the OR would need to claim back from Inland Revenue. |
|
|
|
zoe
Junior Member
329 Posts |
Posted - 26 August 2008 : 11:30:20
|
| Have you signed an IPA??? what date was stated on that???? |
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 26 August 2008 : 11:31:31
|
Hi if your on a NIL tax code then you technically get the money in with your wages i beleive, that means that it looks like you have more money in your bank. If that happens you will need to set aside the differnce which could be say £ 150 in taxx that you would have paid as that goes to the OR, the Tax office only apply the code its up to you to sort out when the code was added and if you have got the extra putting it somewhere safe to give back so that the OR gets the money.
Does that make sense.
Check your wage slips and have a look, see if the code has been set up and what the difference is to the slips before the code was changed.
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 26 August 2008 : 11:33:40
|
Oh and you say Sueann yours is not done yet, it can take the tax office a while to get it set up, just keep checking and it only starts to get put to one side when your tax code changes and not before.
As far as im aware ours has not been done yet, but I wont know till Thurs as its OH payday and then we can work it out from there.
So dont panic
Jo
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
|
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 26 August 2008 : 11:41:03
|
| Not signed IPA yet, not heard anything but I only went BR beginning of the month and had my OR interview on 12/08. I get paid end this week and my tax code is still unchanged. How long does it usually take to set up the IPA's and tax? several months is OK with me as I have £0 in saving like most of us and would like to have a small emergency fund putin place whilist they are sorting the IPA. |
|
|
|
zoe
Junior Member
329 Posts |
Posted - 26 August 2008 : 11:47:48
|
If you have not signed an IPA then until you have the money is yours to do with as you please.
If you have you should be putting this money to one side as you have signed to state you would pay the OR from a specific date.
|
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 26 August 2008 : 11:51:24
|
Hi Zoe
Thanks that has helped me out too. Does that still come into effect when the tax code changes. What I mean is if say the tax code goes to 0 next month, no IPA signed till following month then the first month is still yours or is the TAX money a different kettle of fish.
Cheers
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
|
|
|
zoe
Junior Member
329 Posts |
Posted - 26 August 2008 : 11:55:00
|
| I dont think that the Tax code will change until an IPA has been signed as you have to agree to pay over tax monies to the OR also. |
|
|
|
Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 26 August 2008 : 11:57:46
|
I signed to say I would start paying my IPA from May 2007 (I think) but I didn't actually make a payment until the end of June 2007 due to the length of time it took to set the IPA up. I got to keep the extra money.
However, if you have a nil tax caode before the IPA is set up, you must put this extra money aside as it belongs to the tax man! In reality the nil tax code can take a while to set up, so you'll probably be paying tax the normal way for a while.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/ |
|
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 26 August 2008 : 11:59:02
|
Is the IPA and Tax combined into one Direct Debit to the OR? I was under the impression that the tax formed a part of the IPA for 12 months therefore I would make a combined payment so I expected them to start at the same time.
Also I here people mention that the tax is only paid up until the next tax year starts, my OR has informed me NO you pay the tax for 12 months which is the term of the BR. |
|
|
|
Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 26 August 2008 : 12:06:14
|
I'm sorry, I never had a nil tax code so I don't know if it is paid as one payment. The nil tax code basically starts when the tax office implement it, which isn't necessarily the same time as the IPA starts.
The tax is paid to the OR for the remainder of the tax year that you went BR. After that your tax code will revert to normal. That's the reason I didn't get a nil tax code - I went BR on 29th March and so there was no time for the tax office to implement it.
Also, if you change jobs during that tax year your tax code will revert back to normal.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/ |
|
|
|
indy2005
Junior Member
458 Posts |
Posted - 26 August 2008 : 12:43:06
|
Hi,
Thanks all. I am waiting for RTLU to get in contact to begin setting up the IPA so am living normally now, and putting aside about 980 a month tax as I am on a nil tax code. I went BR in May and so far have had 2 monthly payments with no tax.
Although we verbally agreed an IPA payment at my interview, the examiner then went off to get the paperwork and came back telling me the figures had to be reviewed and so the IPA couldnt be set up.
He was being examined at the time himself, and I believe he was perhaps too lenient with me and so got told off when he left the room.
Regards
i |
|
|
|
zoe
Junior Member
329 Posts |
Posted - 26 August 2008 : 12:56:26
|
| Did you not sign anything then Indy??? |
|
|
|
indy2005
Junior Member
458 Posts |
Posted - 26 August 2008 : 13:12:19
|
I signed the documentation of the interview which included a preliminary agreement of a £300 IPA payment (half my current DMP payment). But there were no dates. He then went out of the office and told me we would have to set the IPA up at a later date.
I have been informed by my examiner that my IPA will get dealt with by the RTLU but he could give me no timelines.
Who knows...if I get discharged before they get round to it, I guess I get out of it! I am in no rush for it, believe me. Nice to be normal at the moment. Its just having to keep my tax to one side and have nobody to give it to. |
Edited by - indy2005 on 26 August 2008 13:13:15 |
|
|
|
Topic |
|
Expenditure between BR order and IPA
