HOME  FORUM  MEDIA  EVENTS  ARTICLES  TV  BLOGS
•Home
Bankruptcy:
•Bankruptcy Information Center
•What is Bankruptcy?
•Is Bankruptcy right for me?

•How to declare Bankruptcy?
•What happens to my assets?
•Bankruptcy and credit rating

Forum:
•forum
•register
•search
•faq
•experts

Blogs:
•Bankruptcy News
•More...

Media Room:
•Press releases
•Media Coverage

Other:
•About BankruptcyHelp
•Links
•Contact us
•Debt Glossary
•Insolvency jobs


FORUM
  > Browse and post on our forum
Home   |   Profile   |   Register   |   Active Topics   |   Members   |   Search   |   FAQ

Welcome to our Forum, please register if you want to post
Ask a debt question
See the last 250 posts
Watch video on how to use forum
Username:
Password:

Save Password
Forgot your Password?

 All Forums
 New Questions
 Forum Questions
 Tax Code - Refund!!!
 New Topic  Reply to Topic
 Printer Friendly
Previous Page | Next Page
Author Previous Topic Topic Next Topic
Page: of 3

JulianDonnelly
Junior Member



United Kingdom
325 Posts

Posted - 03 September 2008 :  11:18:19  Show Profile  Visit JulianDonnelly's Homepage  Reply with Quote
Hi Jo,

In a word, no. In the case I quoted, the chap went BR at the start of the financial year so he would have had the full year.

Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367
Go to Top of Page

BankruptC
Senior Member



1030 Posts

Posted - 03 September 2008 :  12:25:27  Show Profile  Reply with Quote
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
Go to Top of Page

JulianDonnelly
Junior Member



United Kingdom
325 Posts

Posted - 03 September 2008 :  12:31:09  Show Profile  Visit JulianDonnelly's Homepage  Reply with Quote
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
Go to Top of Page

BankruptC
Senior Member



1030 Posts

Posted - 03 September 2008 :  12:32:51  Show Profile  Reply with Quote
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
Go to Top of Page

JulianDonnelly
Junior Member



United Kingdom
325 Posts

Posted - 03 September 2008 :  12:39:17  Show Profile  Visit JulianDonnelly's Homepage  Reply with Quote
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
Go to Top of Page

BankruptC
Senior Member



1030 Posts

Posted - 03 September 2008 :  12:43:58  Show Profile  Reply with Quote
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
Go to Top of Page

JulianDonnelly
Junior Member



United Kingdom
325 Posts

Posted - 03 September 2008 :  12:48:38  Show Profile  Visit JulianDonnelly's Homepage  Reply with Quote
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
Go to Top of Page

BankruptC
Senior Member



1030 Posts

Posted - 03 September 2008 :  13:08:45  Show Profile  Reply with Quote
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
Go to Top of Page

369
Junior Member

366 Posts

Posted - 03 September 2008 :  14:53:38  Show Profile  Reply with Quote
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!
Go to Top of Page

JulianDonnelly
Junior Member



United Kingdom
325 Posts

Posted - 03 September 2008 :  14:57:57  Show Profile  Visit JulianDonnelly's Homepage  Reply with Quote
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
Go to Top of Page

BankruptC
Senior Member



1030 Posts

Posted - 03 September 2008 :  15:15:04  Show Profile  Reply with Quote
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
Go to Top of Page

JulianDonnelly
Junior Member



United Kingdom
325 Posts

Posted - 03 September 2008 :  15:17:10  Show Profile  Visit JulianDonnelly's Homepage  Reply with Quote
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
Go to Top of Page

BankruptC
Senior Member



1030 Posts

Posted - 03 September 2008 :  15:19:17  Show Profile  Reply with Quote
Excellent. That's all I need to know! :-)

CG. x
Go to Top of Page

JulianDonnelly
Junior Member



United Kingdom
325 Posts

Posted - 03 September 2008 :  15:19:45  Show Profile  Visit JulianDonnelly's Homepage  Reply with Quote
Glad we cleared that one up then :)

Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367
Go to Top of Page

BankruptC
Senior Member



1030 Posts

Posted - 03 September 2008 :  15:23:54  Show Profile  Reply with Quote
Hehe sorry to be a pain. I do think it's worth asking if you don't 'get it' though.

CG. x
Go to Top of Page
Page: of 3 Previous Topic Topic Next Topic  
Previous Page | Next Page

 New Topic  Reply to Topic
 Printer Friendly
Jump To:
bankruptcyhelp.org.uk Forum © bankruptcyhelp Go To Top Of Page
Powered By: Snitz Forums 2000 Version 3.4.06