I have just been made Bankrupt. and i have been given a NT tax code. I am a bit confused on what this means. I know that i dont have to pay tax until the mew tax year but this mean i will have to pay the tax back over the next couple of year
This is an arrangement the Insolvency Service have with the Inland Revenue to channel money that would have been collected in taxes into the bankruptcy estate.
There should be no effect on you as you only pay the Insolvency Service (or agent) what you would have paid in tax.
I havent been contacted by the OR about these payments. I had a letter saying they would take the tax amount from the date i was made Bankrupt to the date of the NT tax code started which was approx three months. Will they want any more payment.
Hi Jo i had a letter stating that from the date of my bankruptcy to the date of my NT tax code was implimented. They took £1200 which was the amount they took for the months between the two dates, would i able to send the letter to you so you can have a look at them. or could i write what the letter to you
Has your NT code started yet? It usually starts when the HMRC change your code as up until then the OR will claim back tax paid to date from your wages as before.
If your tax code has now changed then that monies should be put to one side to give to the collecting agent.
Have you actually paid the collecting agents anything, as you say they took £1200.
I would give our helpline a call tomorrow and ask someone to go over it with you. Our number is 0800 078 9367.
Jo
x
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Hi Jo I will ring the help line tomorrow, i am still confused because i have got a colllecting agent and my NT code started as of my last pay day which was last month. This is what the last letter stated ( A REPAYMENT OF TAX AMOUNTING TO £1034.00 HAS TODAY BEEN ISSUED TO THE OFFICIAL RECEIVER ON YOUR BEHALF. THIS REFUND RELATES TO THE TAX DEDUCTED BY YOUR EMPLOYER FROM 30 JUNE 2008 WHEN TAX CODE NT WK1 WAS APPROPRIATE) and that was the letter i received
It sounds like that £1034 was your tax paid to date from the Beg of the tax year that the IR would have sent directly.
On your old wage slips does it say the last amount of tax to date you had paid as i think they just refunded what you had paid from April to june back to the IR and now you will pay it over to the ORs collecting agent from when your code changed.
So if you pay say £350 PAYE per month for example then that is what they will take, unless you have another IPA which is income related.
Is the NT code IPA all you have?
Jo
x
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
confused by NT tax code
Posted - 27 October 2008 : 15:47:21
