another question about NIL tax code sorry

fatou256

i dont have an IPA as i am only working 16/hours per wqeek and as suchon lwo income . how do u know that you are put onto a Nil tax code ? to be on a NIl tax code do u have to have an IPA or not ? have heard nothing from my OR about this ? sorry iam reallyt confused about this! if i am on a NIL tax code how do i work out the amount i should be putting a side ?

thank you .

tigerfeet2006

If you pay less than £50 tax in a month then you won't pay a Nil TC. As the OR feels it costs to much to collect.

RichOneday_2

In any event, you don't need to put anything aside. The 'tax sacrifice' goes straight to the OR through the PAYE scheme.

tigerfeet2006

Sorry Rich I think you will find it is Clark Willmot who will collect the tax direct from you.

RichOneday_2

tigerfeet2006 wrote: »

Sorry Rich I think you will find it is Clark Willmot who will collect the tax direct from you.

Ok, that's not how I understood a tax-only IPA, but I can see how I may have misinterpreted -

'It just enables HMRC to claim the whole of your unpaid tax for the year of your bankruptcy for the benefit of the OR'

If you have personal experience then you must be right!

fatou256

thank you it is much appreciated but my typo is awfull lol

ok so now i shouldn't be worried too much then but my OH works full time , just went BR this week . so in this case everything is doen by the OR and not by him then ? sorry for asking the obvious but i don't want to go head to head with the OR .

another question on our I&E we put down expenses for content insurance as our Laandlord told us it is our responsabilities due to an other issue with some kids damages but we still don't have it we only put a figure based on a different quote does it matter ? does the OR will ask a proof of that ?

fermi

RichOneday wrote: »

Ok, that's not how I understood a tax-only IPA, but I can see how I may have misinterpreted -

The NT IPA arrangements do seem odd at first.

If HMRC applies the Nil tax code to someone on PAYE, then they will receive the tax that would have been paid in their pay packet. In other words, the tax will not be deducted at source.

In any NT IPA, the OR will instruct their agents Clarke Willmott to collect the tax that would have been paid from the bankrupt.

See: Nil tax (NT) coding/IPAs

Richard_S

Hi fatou,

It's not something you really need to be pro-active about. The payroll department receives the NT Code and apply it to the bankrupt's salary / wages. The only thing you need to do, is put to one side the extra amount received in your wages, in the expectation that you'll have to pay it over at some point.

Having said that, I know of one bankrupt who had an NT code applied in Sept / Oct that ran until the end of the tax year and nobody asked for it.;) It was probably just as well because that particular reckless individual spent it on essential living expenditure.:rolleyes:

Richard

fiveyearplan

Richard_S wrote: »

It was probably just as well because that particular reckless individual spent it on essential living expenditure.:rolleyes:

Richard

That's exactly why I timed my BR to avoid nil tax code. I went BR Friday 4th April, I always leave things to the last minute!

RichOneday_2

A friend of yours was it, Richard? ;);););););)