I am 6 months into my BR and it looks like I may receive my first payrise in 3 years in April... it will only be the rate of inflation, I will also in April receive and increase in council tax and my rent. Will I be required to do another income and expenditure for the OR? because really by the time the CT and Rent increases go on not much payrise left if any.
On another note in April I guess I will stop paying my income Tax to the OR is this automaticaaly done by the tax office? or is there something that I need to do to reduce the payments down to my IPA?
Have a look at what you new informtion is once you have received your new pay figures (after tax, of course) from your pay rise, take also into account the rise that there will be in council tax and any other increases such as utilities/rent etc. Only if there is a significant change would you be requried to inform the OR ie £50 extra (this is not a 'set in stone'figure but to be honest anything less than that is not worth the administrative costs to change the required monthly figure, provided of course this if £50 or less in your favour - if you are in any kind of position where you are worse off get in touch straight away to review the figure with the OR - at no time should you ever be in a position that your outgoings exceed those stated in your IPO Inc & Exp
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
Melanie thank you for your answer. Could you just clarify with the financial year coming to an end does the tax office automatically stop crediting me with my income tax should I amend my standing order to only my IPA payment at the end of March.
Payrise/Tax IPA Question
Posted - 23 February 2009 : 16:35:21
