I was made bankrupt in September 2008 and have an IPO for £200 per month. In October 2008 I received a letter from the Inland Revenue stating that my tax code would be adjusted to NT as of October's salary, I checked my wage slip and indeed my tax code was adjusted to NT. The Solicitors who are administering my IP order adjusted my payment to around £700 a month based upon the fact that I would have been paying around £500 tax (based on the average of 3 previous wage slips). I was under the impression from the OR that my tax code would be re-instated as of the new tax year (April 2009). It hasn't and I am still not paying any tax and paying £700 to the Solicitors, could anyone please advise if I have done something wrong or if I need to notify anyone so that my tax code is re-instated?? No-one seems to be complaining to me about this and as I am no better off I have just let things go on liek this but now I am slightly worried that I could be hit for a huge tax bill?
the nil tax code is usually issued for the tax year in which you went BR, my hubby has been through this and he had to inform HMRC becuse they had not changed his tax code back for this tax year, i hope that helps.
So I guess I'd better inform them. I hope there is no penalty involved as I simply carried on as if nothing was wrong, it's not as if I changed my payment to the solicitors. I thought that as the tax code was altered without me having to do anything, I assumed that it would be the same when it needed to be reverted back?
Bankruptcy and NT tax code
Posted - 15 June 2009 : 12:39:55
