Becoming Sole Trader and Nil Tax Code

JoshuaTree

Hi All.

I am planning to go BR next March / April.
I am employed and paying tax under PAYE.

My question here is related to Nil Tax Code.
The lew says that :

The NT code is applied to all income earned by the bankrupt after the bankruptcy order date, either until such time as there is a change in the bankrupt's source of income, or the tax year in which bankruptcy occurs comes to an end, whichever event is the earliest.

I am planning also to become sole trader.
The question is:
Let's say that I am declared BR after 5th April 2009. I understund that I ill be applied Nil Tax code. Then, soon later, I stat being also sole trader, but still employed by my current employer. I think that my Tax Code will change after I start also being sole trader, so I will be removed the Nil Tax code, Am I right?

Let's say that I start being sole trader before the end of this tax year, informing InlandRevenue. Then, after April 5th, I am declred BR. As Inland Revenue was already informed, I asume that my Tax Code won't change after BR, so the Tax Code will be applied to the Tax I should pay from my current job and also to the Tax as a sole trader. Am I right?


Thank you in advance ...

Jo

tigerfeet2006

I f you become BR whilst employed you will get a NT code. If you become self employed then you will revert back to your paying HMRC.

If you are self employed when you go bankrupt then you will have your tax code changed to NT code.

If you can go BR in the last week or so of March then I very much doubt you will be given a NT code so it might be worth looking at that if you can hold n that long.

JoshuaTree

Thank you!

and what if while still employed in my current job I start also to be sole trader before being declared BR? Will the NT code be applied to all my income, or only my current job?