Help Income Payment Agreement

outdriveman

Help

Do I need to pay this?

The Story
I was made Bankrupt on 8th April 2008. The Nil Tax code was applied on my salary on the 30th september 2008 I payed Clarke Wilmott the money I would have paid in Tax. The begining of November I changed jobs I have informed the Insolvency service and Clarke Wilmott (Incl sending Clarke Willmott a scan of my new payslip and my P60) I am now paying income tax as per normal but Clarke wilmott want money as well?

I had a letter from Clarke Willmott today which goes as follows" On 14/07/2008 you entered into an Income Payment Agreement with the Insolvency Service, Requiring you to make payments via ourselves for the current tax year. These payments were the additional monies you would receive through not being taxed once the appropriate coding was applied

Your NT coding was applied to your wages on 30th September 2008, with your circumstances occuring on 24th October 2008. A total of 7 payments are therefore due to satisfy your income payments agreement.

You currently have an Outstanding balance of £2,470. Pleas contact us to arrange the repayment of these arrears."

Is this normal ?

Thank you in advance for any help given

Steve

maxmycardagain

you should have transferred your NT tax code to your new job surely?

These payments were the additional monies you would receive through not being taxed once the appropriate coding was applied

how much tax have you paid in the current tax year?

they seem to be asking for whatever you paid in tax from april - now, does the amount tally?

if so, do they assume your NT code will bring you a big tax rebate which you will pass on to them?

outdriveman

Firstly thank you for your prompt reply
As I understand you go back to normal when you change jobs . I am currently paying tax with the new job. I havent got my tax payment ofr the last year however I have not missed any payments to Clarke Wilmott or the tax man. In short I dont have any additional monies.

peachyprice

The NT code doesn't transfer when you change jobs, it goes back to your normal code, which it has, and is correct.

The 7 months they are referring to are April to September, but as HMRC didn't apply your NT code until September Clarke Wilmot will have to get the rest of the tax direct from them. Do you still have your wage slips from April to September showing your normal tax code?

They cannot take tax from you that you have already paid to HMRC.

outdriveman

peachyprice wrote: »

The NT code doesn't transfer when you change jobs, it goes back to your normal code, which it has, and is correct.

The 7 months they are referring to are April to September, but as HMRC didn't apply your NT code until September Clarke Wilmot will have to get the rest of the tax direct from them. Do you still have your wage slips from April to September showing your normal tax code?

They cannot take tax from you that you have already paid to HMRC.

Thank you very much for your advice

Yes I have still got my wage slips showing I was paying tax as per normal. Clarke willmott would have had this information already is this normal practice from them?
Thanks again

rocketron_1

Hi,

Hopefully I have chosen the correct method of posting a new question.

I was declared bankrupt in June this year. I have agreed to the conditions of an IPA. I am expecting my tax code to be changed shortly to NT and then make payments of the amount I receive in not paying tax, to Moon Beever for the rest of the financial year.

I have not been appointed a trustee and have not been instructed to make any other payments.

What I do not understand is what happens at the end of the financial year?

Any help is appreciated.

Rockeron

debtinfo

at the end of the financial year you will be given a new tax code like everyone else and start paying tax direct at source to HMRC again

ps i think you are meant to start a new thread