IPA Query

needalittlehelp

Evening everyone!
Just got a question regarding the IPA. I recently received early discharge notice through the post. When I went bankrupt I signed an Income Payment Agreement, which is where the NT coding was applied to my salary until the end of the current tax year. Since then, I have paid my tax into the Natwest Bank (for Clarke Willmott) but only have two slips left – which take me up to March wages.

What do I do after March?

Do I have to request a new paying in book?
Do I need to continue to tell my OR about changes to wages etc?

Thanks in advance,

nervousmother

As far as I am aware the NT code stops after march, Im hoping i wont get one, i went BR 6th jan, already had jans wage without the nt code, only leaves 2 months, im jsut hoping they wont bother

peachyprice

March will be the last payment of the NT IPA :j

needalittlehelp

But will I have to continue to pay the IPA? Do I have to give all my outgoings/ingoings again?

tigerfeet2006

If it is a NT code IPA then no as it finishes at the end of the tax year you went BR in and you have no need to advise the OR of any changes to your income when you are discharged.

If it is a surplus IPA then yes you pay this until the 36 months are up. You must tell your OR of any changes to your income in that time and the OR can adjust it up, down or suspend it.

HTH

needalittlehelp

Thanks tigerfeet2006 vbmenu_register("postmenu_18371327", true);

How do I work out if the IPA is a NT Code or a surplus one?

Sunny_Bear

If its just a tax one it will be an amount you agreeed so should be equivilant to the tax that would normally come out of your wages but you are paying it to Clarke Wilmot instead. If its a surplus income one you will have had over £99 surplus when you did your income and expenditure with the OR. I would have thought you'd know if it was becasue you had surplus income!

Merry_Gentry

needalittlehelp wrote: »

Thanks tigerfeet2006 vbmenu_register("postmenu_18371327", true);

How do I work out if the IPA is a NT Code or a surplus one?

(i) You would have the paperwork from the OR where you signed to agree to pay the nil tax IPA.

(ii) Your payslip would show as nil tax.