Employers and bankruptcy

poppy52

Do employers have to know if someone becomes bankrupt?

davek1

No only if you are in certain proffessions like accountants police officers, customs officers etc. generally the answer is no.

Dave

Mark7799

It depends upon the job the employee is doing. In some industries it won't matter at all, in others (mainly in the finance sector but from memory I think the police and armed forces aren't keen on it either) then it can have serious repercussions. Checking the contract of employment is usually the best option.

Addicted2Chocolate

generally the OR does not inform the employer. they may guess though, as the employee will get a tax holiday and a NT tax code. ( so until start of next financial year they dont pay any income tax and they shoudl pay the equivalent of the amount of income tax to the OR in a Income Payments Agreement) I dont know how many other reasons there are for getting a NT tax code.

davek1

Just a point i have an NT code because im a higher rate tax payer and all my alowences are on an occupational pension so wouldn't think its that unusual. having said that i am no expert

homersimpson_3

look at internal procedures which form part of terms and conditions. with some jobs you can even be disciplined for having ccj- usually if in position of responsibility or handling other's money.

Addicted2Chocolate

i thought there were other reasons for NT tax code, just was not aware of any....

davek1 wrote:

Just a point i have an NT code because im a higher rate tax payer and all my alowences are on an occupational pension so wouldn't think its that unusual. having said that i am no expert

paul10mm

my wife and i are due to go bankrupt on the 13th of feb as we have debts that total over £125,000.00 my question is i have read/heard that my tax and national insurance will be used to pay my creditors??Is this true if so how is it done?
And on a more persoanl note how do people find the offical reciver im the one to blame for the state my wife and i are in Dont know how well she will handle interview are you allowed to have some one with you??
Again thanks to every one for there help just wish id found this site earlier!

piptiddlepip

My wife works for the Official Receivers and they are firm but fair. They are not there to scare the daylights out of you, but you MUST be 100% honest with them about everything. Don't try to hide anything and they will be fine.

smokey112

Paul

I believe you can have someone with you - do you mean are you interviewed separately and you want to go in with your wife or do you want a 3rd party to be with you.

I believe if you are declaring BR together then you can and should be interviewed together, I am also led to believe that you can have someone with you for support but they cannot say anything

HTH

Ang

Addicted2Chocolate

you will be interviewed separately this may be over the phone or in person at the OR's office. If it is a face to face she can have someone attend with her.
You get a income tax holiday via the NT tax code that I described above. once you have NT tax code your take home pay will rise by however much your income tax was previously, and OR will seek this amount from you under an Income Payments Agreement. However if there are only 1 or 2 months until start of next tax year it is unlikely OR will collect the NT element, it would not cover the admin cost. You go back to normal tax code at start of next tax year.