Got letter from HM Rev & Customs - can someone just look for me ..

fudge59

and stop me worrying!

Below is the letter :

"I understand you were made bankrupt on 9 May 2008.

I have amended your PAYE code to NT (Week/Month One basis), which means the tax will not be deducted from your pay until 6April 2009. Code NT will only apply whilst you are employed by (my employer). Please let me know if you change your job before 5 April 2009 so that we can amend your tax code to ***L on a week/month one basis.

In the period from the date of bankruptcy to the date that code NT is first operated you may have had tax deducted from your pay. This tax will be repaid to the OR in accordance with the authority that you signed. "

The text in bold above is what i'm worried about - as are they saying that the tax which has come out of my May, June and July salary will be paid from the HM Revenue & Customs to the OR.

Does anyone know how soon these things are done? The letter was dated 16 August 2008, does anyone think that that will be changed in time for my August salary? (just I've not heard anything concerning the tax payment, have agreed the IPA but that's not due to start till 1st October 08)

dalip

Any tax that was not taken from your wage until your tax code is changed,the OR collects direct from HMRC at the end of said tax year.If your tax has changed this month then C&W will be in touch for you to pay them direct what you would have paid to HMRC.If not don't worry. It is standard process. These things take time,if you do not pay your normal tax this month put it somewhere safe where you won't be tempted to spend it until c&w get in touch.D

tigerfeet2006

Your NT code IPA is seperate from your normal IPA. When you get paid you will notice there is more in your pay packet. This is the tax you would normally pay. You must keep this to one side until Clarke Wilmott ask for it. This may take them a while but don't spend it as it must be paid to them.

dalip

Where have you been tiger your pm box is full and i have been worried:eek:

fudge59

Thanks for the quick replies - can someone confirm whether NI is included within the tax I pay each month (so it'll go to C&W), or whether this will still come out of my salary?

tigerfeet2006

Sorry sweet, been really busy with all the family. It's been a bit chaotic with all sorts happening. I am only online at the moment while I scoff my tea down. Will empty inbox later sorry

dalip

HMRC never got around to doing mine but i believe NI is a totally diff thing and still comes out of your salary.D

Dez-Titute

Hi Fudge ,,
In a similar situation.Have had same letter as you but 2 months later still not had anything telling me how to pay or how much.

As a rough guide Im working on taking off £5,500 ,then deducting NI then working on 20% if its more than that they are going to have to whistle cos I wont have it

fudge59

Dez-Titute,

I know how much I'll be paying (around the £243 mark) as that's what I've been paying since my last pay rise, plus that figure was mentioned in the IPA paperwork (that I didnt agree with), so think it's just a waiting game to hear from C&W - but from what you've said it could be a while!

I know we've got a savings account we can put any 'extra' money in - though I know that'll be tempting - might have to give it to my parents if it goes beyond 2 months!!!

Dez-Titute

If you've got it use it

dalip

Well if its any consolation to either of you. I went bc in nov 07,had letter from HMRC to say they were writing to my employer that day(beg jan) to impliment the NIL tax code. I left that employment end of feb and by then my employer had not heard a dicky from HMRC. Of course changing jobs meant my tax code never changed.D