IPA Question

RichOneday_2

I've been asked a question re IPAs which I can't find the answer to. Just wondered if anybody has been in this scenario?

You go BR while on benefits so no IPA is initiated, not even for the No Tax if not employed. You then subsequently, at some point before discharge gain employment and advise the OR accordingly.

Does the OR then initiate an IPA even though you may be close to discharge and, if so, for what period? To the point 36 months after BR date?

Or is it a case of the OR had one chance and then that's it?

philnicandamy

RichOneday wrote: »

I've been asked a question re IPAs which I can't find the answer to. Just wondered if anybody has been in this scenario?

You go BR while on benefits so no IPA is initiated, not even for the No Tax if not employed. You then subsequently, at some point before discharge gain employment and advise the OR accordingly.

Does the OR then initiate an IPA even though you may be close to discharge and, if so, for what period? You must inform the OR within 21 days of ANY changes in financial circumstances...the OR would then send out a new I&E form to fill in to assess IF an IPA is suitable....if it is then once you receive confirmation from the OR it's 36mnths from the date it starts..bear in mind though once the revised I&E goes in there will be new expenses with working etc so an IPA may not even be considered To the point 36 months after BR date?

Or is it a case of the OR had one chance and then that's it? Nope..while undischarged the OR can do or request anything....after discharge then nothing (unless an IPA is in force)[/quote]

Hope that helps

RichOneday_2

Thanks Phil.

And the Nil Tax code would still be applied to the end of the tax year in which the IPA was set up?

PixiePie

RichOneday wrote: »

Thanks Phil.

And the Nil Tax code would still be applied to the end of the tax year in which the IPA was set up?

You only get a Nil tax code if you are working at the time of going BR, and this is only until the end of the tax year in April OR if you change/leave the job at any point during that tax year. If you weren't in employ at the time of BR you shouldn't get a Nil tax code.