Wages,Tax & Insurance

neverindebtagain

Spoke to my boss todya and she wants to know what happens with the tax and national insurance she deducts from my wage. Will she keep paying me net until she receives a letter, I understand I will get a nil tax code, how long does that take, What do I do when I am paid gross, i know I cannot spend it, how will I know how much to put to one side for OR.

Richard_S

Hi never,

Your employer shouldn't do anything different until she receives an NT code, which may, or may not happen.

If she does receive the code, she applies that code to your wages which means you won't pay any tax; it doesn't affect NIC or EmpNIC. The onus is on you to make the tax you would have paid available to the O.R; it's not your employers responsibility.

You may or may not receive a letter from an agent of the O.R requesting the tax to be paid to them; they do all the calculations for you.

The ambiguity arises because sometimes they never get round to collecting the tax, so it's something of a windfall.:cool::D

Having said that, best to put it to one side in case you are asked for it.

Regards

Richard

tommo20

Ah, I was very slow in typing this and Richard_S has beaten me to it but I'll leave this on here anyway.
I'm saying this assuming you haven't gone Br yet. So excuse me if I state the obvious.

Your OR will advise you that he is writing to Inland Revenue to get you placed on nil tax code and ask you to estimate the amount of tax you pay monthly.
This estimated figure will form the basis of the monthly payment.
Don't be surprised to receive an IPA form even if you have been told you will not have to pay a contribution from any surplus income - you sign this & return it to the OR who authorises it and passes it on to an Insolvency service who will write to you requesting your last 3 payslips.
The agent will check for your nil tax code and calculate your payments. It will only be for the tax you would have paid and will only be paid until the end of the Tax year (next march). You continue to send your payslips every month/week.
There is no need to save as you will be able to pay from your first nil tax code pay packet (thats the idea anyway)
Hope this helps
Good luck

neverindebtagain

Thanks for the replies, don't want her to think I am going bankrupt and then getting extra money in pay packet to squander, if only.

Trying to tell someone you are declaring yourself br because you are never going to ever be debt free, its hard for them to understand. She said today some people will probably looked down on me and be funny with me. To be honest after all these years of worrying, I do not care. I have tried my hardest. It must be nice to have a perfect life, but no one knows what is round the corner.

Richard_S

neverindebtagain wrote: »

Thanks for the replies, don't want her to think I am going bankrupt and then getting extra money in pay packet to squander, if only.

Trying to tell someone you are declaring yourself br because you are never going to ever be debt free, its hard for them to understand. She said today some people will probably looked down on me and be funny with me. To be honest after all these years of worrying, I do not care. I have tried my hardest. It must be nice to have a perfect life, but no one knows what is round the corner.

Hi Never,

All you need to tell her is that you when she receives the NT code and you don't pay any tax, that you'll have to pay it over to the O.R's agent, and that it's not yours to keep.

Don't ever forget that somebody can only look down on you if you let them. I'm sure people tried with me/us but they would have stood more chance of being able to fly. Hold your head up high, admit you've made mistakes, but you've addresses the problems in the only way you can, and then get on with the rest of your life.:beer:

Richard

tommo20

neverindebtagain,

Anyones who's lived a bit would know that most of us on this earth are are only a couple of missed paycheques away from the courts. Although I do have a mate who's been BR 3 times and people do tend to look at him a bit funny when they find out.

Good Luck

messimoney

Can I just ask, does any know how the OR decides if your going to get NT or does everyone just get it. Im bobbing it now that my boss will ask why I have it.

neverindebtagain

Thats why I told my boss, it was easier than I thought, my husband thought I should have not said anything, I just did not want to be on pins in case she found out by some one else.

peachyprice

Messi, most people get one if they go BR at the beginning or middle of the tax year, the odd person does get overlooked. Once it gets to Feb/Mar the OR tends not to bother and justs ask HMRC direct for the tax at the end of the tax year.

There are many reasons people get nil tax codes, there's no reason why an employer will automatically guess it's because of BR.

HMRC are very discreet when making enquiries with employers, they wrote to mine asking how much tax I'd paid in the tax year up to my BR date, and from that date to the date of the letter, but all it said was that they were reviewing my file, and could my payroll lady provide the info.

messimoney

Im not telling mine, she will sack me on the spot in my line of work. Honest or not, Im dragging it out as long as I can and until they find out.

neverindebtagain

I work for a small company, the bosses are married, I have said that if they want me to quit I will but they are happy for me stay. First day back at work today since I got my date, didnt know if I should have looked sad but to be honest I have become numb.