Bankruptcy and the nil tax code

geministar2008

I went bankrupt begin of Januray. I return to work next week.

The official receiver stated as i earn so little, my hours vary and have no surplus income left each month the nil tax code may not be relevant.
She explained that they only apply the nil code until the beginning of the new tax year. Therefore they only have 6 weeks of wages for myself which will probably total a sum of around £60 in tax.

If this is the case then does this mean i will have my usual tax code?

Any advice would be great, many thanks.

fermi

When you say "return to work" I assume that is back with a current employer?

If so, then you may or may not get a Nil Tax code. Depends whether HMRC do it in time. Even if you do, it probably will not be worth the OR's while collecting for such a small amount. I would cost them more in admin to collect than it is worth if you see what I mean.

If the code is applied before April then just tell your OR and ask if they want to collect. They probably wont.

geministar2008

Thanks i have emailed the OR office to see what they may intend doing.

I have also been told that my return to work has been put back (yes a current employer). Only by a few days, but still less money to be earnt in my first week.

Also what would happen if i receive a small tax rebate say £100 or just short of £100? Would the OR ask me to send them that money? Or could i keep it. I'm getting desperate for money so could do with something from somewhere.

I have also asked the OR this in my email.

Look forward to hearing further advice.

Thanks

dalip

My OR told me any windfall, as in lottery ect, below a £100 i could keep. Now where tax is concerned it may be different, as even though you tax code may not change the OR still collects all tax that you have paid, for the year in which you went bc,direct from HMRC.Dx

geministar2008

i had email stating the nil tax code in highly unlikely to apply to me due to the time left in the tax year and my level of earnings.

She also said a small tax rebate will probably not serve any cause for concern.

We will see what happens.

Thanks

MercMan

Can some explain where the nil tax code comes from? Not heard of this before. I take home £900 per month will I qualify?

nervousmother

It will qualify if you pay tax,

I was told today from the OR that the nil code will last the whole of my BR? is this right as i was under impression it would only last until end of tax year?

MercMan

Yes I do pay tax.

charliewalsh

I am sorry to 'barge in' and I heard of the nil tax code but do not know much about it. I do not know how to post a note on the forum so I thought reply to a mail might be the first step.

I am thinking of bankruptcy and have spoken to the O.R to find out about the consequences, etc. Can anyone tell me what exactly it's like to be made bankrupt? Will I loose my car? I need my car for work, without it, I do not have a job. Have anyone had any first hand experience that can share with me so that I can be prepared?

I jointly owned my house with my husband - O.R said they will ask my husband to buy off my share of the property based on the equity. For e.g, if my house have 2000 pounds equity, 50% is 1000 pound. Does this means my husband must pay OR 1000 pound to buy my share? Can anyone share their experience please? I am very anxious and worried....

xocbc

I've been BR 8 months and don't have a nil tax code...

Merry_Gentry

Nil tax code is where they apply a nil tax code and you receive your tax in your paypacket. Don't celebrate - you then need to pay it to Moon Beever as an IPA. It lasts until the end of the financial year, or until you move employeers whichever happens first.

It may not be applied if you go bankrupt near the end of the financial year. Check your payslip to see if it has been applied, and you should be contacted by Moon Beever. If you are not contacted do not spend this money - it may well be that they are busy, and will chase you up sooner or later.