NT Tax codeing

Lacoste-kid

qwertyuiop

blueopal5577

Quote from insolvencyhelpline.co.uk



viii) 'NT' tax code Income Payments Agreements and Income Payment Orders

When a bankruptcy order is made against an individual who is subject to PAYE, HM Revenue and Customs (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), as long as the debtor does not change his/her source of income(i.e. gets a new job) during the tax year in which the bankruptcy order was made.



You employer will not know you are bankrupt purely by the tax code as its applied to students who only work in holidays and some other catagories that I cant remember. No one looks that carefully but Nil tax doesnt automatically = Bankrupt.

fermi

It shouldn't tell your employer that you are bankrupt.

I noticed an examiner post this on another forum a while back. I hope it's true.

A bankrupts employer (being nosey) once requested a full breakdown into why his member of staff was on a nil tax code, and had a 27 page reply with every possible reason this could happen the guide book that explained it and a little note at the end that said

"cause we told you to, and will not tell you why"

HMRC is a bit of law on to themselves

JCS1

Lacoste-kid wrote: »

Can someone please explain this NT tax code that i have read about on the site

I was self employed untill march this year, and had to stop tradeing.

As well as the usual debt, cc & loans, mine also includes the inland revenue.

I am currently unemployed but hope to get a new job very shortly, so does this mean any new employer would know i was a br as i would not be paying any tax & Ni.

ps. Not currently br, but will be very shortly.

I was hopeing that it would be a new start & new career and my new employer would not need to know ?

Any help would be appreciated

Also, it only applies to your employment as at the date of the BR order, so if you get a job after your BR, then your tax code won't change.

Billy_Liar

A bankrupts employer (being nosey) once requested a full breakdown into why his member of staff was on a nil tax code, and had a 27 page reply with every possible reason this could happen the guide book that explained it and a little note at the end that said

"cause we told you to, and will not tell you why"

Fantastic :rotfl::rotfl::rotfl: