I went on a nil tax code in september 2008 so have not paid tax for 7 months now. Obviously my next salary falls into a new tax year so i will go back to paying tax. However all the unpaid tax is sat in my bank, it has never been asked for. I can't help thinking 'what if' and it is driving me mad. Of course i could phone the OR and tell him or i could sit dreaming of them missing me somehow. I know they have a backlog but 7 months does seem a long time. I was discharged in December 2008 and i am just buying the BI in my house, this is the only thing that remains not dealt with. Anybody else in a similar boat??
When you go BR you will be put on a nil tax code (as long as it is not too close to the end of the tax year). You will therefore not pay any tax from your wages. What should then happen is that you pay the extra in your wage into an IPA. With me i was told that a certain company would contact me to make the arrangement to pay it. When they hadn't contacted me i called them and was told they had no record of me. I called the OR and he said they were in the process of changing the company that collected the money and that they would contact me shortly. I am still waiting 7 months on.
I could do with more explanation re this. Is it just for self employed ? I thought work would not be notified but they will be re tax according to this post
Hi Ripski its not just self employed, work will not be informed that your BR but may wonder why you are no longer paying tax but i dont think they are informed to the reason why.
I think the tax in your wages is extra to the IPA. Come next April then your tax code will revert back to normal, but if you have an IPA that will continue for the next two years.
Hi there I was also made BR in Sept 08 and was told I would receive nil tax code and someone would contact me to collect monies. I received nil tax code in November but didnt hear from anyone. I finally rang the OR in Feb 09 and asked what to do he was a little surprised but told me to send him the money made payable to "official receiver in bankruptcy" i did this and also a payment for march. I should now back on normal PAYE for April's wages onwards but havent heard anything from OR still so i would ring and get it out of the way.
Definately call the OR because sooner or later it will be realised that you were on a nil tax code and you might get a huge bill! Call them and find out where to send the payment to. If you have an IPA I would call the Solicitors dealing with your bankruptcy i.e. Moonbeever.
you don't end up with a tax bill , a nil tax IPA is just a means for the OR to get the Tax that you would normally be paying to the tax man and spreading it between your creditors. It is only if you pay tax and only if it can be done in time for the NT code to be applied before the end of the tax year. Hence apparently the busiest time for people with jobs to go BR is February and March so that the OR will not have time to sort out the NT IPA and therefore the employers will not have to question the NT code.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman) Life's too short!!!
When will they come for their money?
Posted - 09 April 2009 : 17:32:41
