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amyc
Junior Member
113 Posts |
 Posted - 11 November 2009 : 20:42:42
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I have seen a few postings on here where people are mentioning having a nil tax code on their payslips. what does this mean, we are going bankrupt soon. does this you dont pay any tax out of wages and pay it to someone else or am i on completely wrong path  |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 11 November 2009 : 21:13:42
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the tax you would have paid to the HMRC is paid to you. your wages are paid to you gross, you save the tax you have been paid and give it to a firm of solicitors normally moonbeaver, this is called a NT IPA.
you only do this for the rest of the tax year that you go BR in.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 11 November 2009 : 21:14:50
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Amy,
When a bankruptcy order is made against an individual who is subject to PAYE, HMRC applies a “nil tax” code to that person for the remainder of the tax year in which they were declared bankrupt and can then claim in the bankruptcy for the amount of tax which would have been collected (plus any other money owed for previous years). However, if the debtor changes his/her job during the tax year in which the bankruptcy order was made the nil tax code ceases to apply from the date he/she leaves the job held at the date of the bankruptcy order.
A company called Moonbeaver will then collect this money in due course - it may be some 3/4 months but they will be in touch.
quote:
Originally posted by amyc
I have seen a few postings on here where people are mentioning having a nil tax code on their payslips. what does this mean, we are going bankrupt soon. does this you dont pay any tax out of wages and pay it to someone else or am i on completely wrong path
Treat EVERY Penny as a prisoner. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 12 November 2009 : 09:12:24
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It also depends on at what point in the tax year that you go BR as HMRC may not have time to set it up.
I seem to remember you mentioning going BR in February, so I very much doubt you would get an nil tax code at that point.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
28 IPA payments made, 8 to go - in single figures! |
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amyc
Junior Member
113 Posts |
Posted - 12 November 2009 : 21:10:21
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| i am very confused lol , it doesnt take much. so what i would normlly pay towards tax i have to save and pay it to this company when they contact me? |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 12 November 2009 : 21:15:42
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yes
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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amyc
Junior Member
113 Posts |
Posted - 12 November 2009 : 21:20:51
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| so how do i know exactly how much i should be saving towards tax? |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 12 November 2009 : 21:28:06
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the amount that you have paid in tax will be on your wageslips, so until Moonbeavers contact you and set up the NT IPA you just keep the amount you have paid on previous payslips.
when it is all set up the figures are fixed each month, so if your wages go up or down significantly ie. overtime or bonuses you have to inform the OR and Moonbeavers
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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nil tax
