Nil Tax Code Question

sortedx2

Hi

My husband has received a letter from HMRC about nil tax code

He is on incapacity benefit and they deduct about £7.85 per week:rolleyes:

Do you think the OR will want it and if not what will happen to it.

Thanks

k&y

Scarlett.1974

I've not heard of anyone before on IB be given a NT code

It's a little quiet on here tonight, but one of the more knowledgable types will be along soon to advise you, I'm sure.

I'm only guessing here, but if the NT code has been applied because of BR, then yes, I'd say that was to go to the OR.

How unusual.......

fiveyearplan

Who is deducting the £7.85 per week?

Scarlett.1974

fiveyearplan wrote: »

Who is deducting the £7.85 per week?

I assume HRMC. Incapacity Benefit is taxable

fiveyearplan

I think you need to speak to the OR then.

sortedx2

Hi

yes it is taxable but i thought it wouldn't be worth them collecting

we will have to wait and see:rolleyes:

thanks

k&y

fermi

If the tax is worth less than £50 per month then it's just not economic for the OR to instruct Clarke Willmott to collect it.

So I'm told anyway.

Richard_S

fermi wrote: »

If the tax is worth less than £50 per month then it's just not economic for the OR to instruct Clarke Willmott to collect it.

So I'm told anyway.

I agree with fermi,

That will never get collected. It might be advisable to put it to one side just in case, but I very much doubt you'll be asked for it.

Regards

Richard

sortedx2

Thanks Fermi:j

I will ring OR on monday and see what she says:rolleyes:

I will put it aside just incase;)

thanks again

k&y

fermi

Yep. The OR sees a normal IPA worth less than £50 per month as uneconomical to collect, so I think they extend the same principle to NT code based IPAs.

One of the examiners who posts here occasionally said as much a few weeks ago.

diablobear

I was working P/T and paying less than £50pm in tax when I was BR, the OR wrote to me to say he had no interest in it. So I sincerely hope the same would happen here.