bankruptcy before April?

piemashandliquer

I posted this in the Discussion time and got abuse so thought it best to bring it here!!

My OH and I are going bankrupt shortly and we both work and pay tax. I understand that if this is after April 6th then they will apply a nil tax code for the whole tax year?

We receive Housing benefits and think that this will be taken into account as extra income therefore potentially nilling us. Would it be less hassle to go BR before April 6th?

Advice please

tigerfeet2006

In a word yes!! we have had several people on here who have had problems with there councils and this.

ETA: As you have found out if you post a BR question any where on this forum other than this board you get abuse.

ETA2: Why aren't I surprised BH was on there back stabbing.

piemashandliquer

Thankyou Tiger,

I shall now sort out my BR post haste.

fiveyearplan

That is exactly why I went BR on 4th April last year - that was the last day of the financial year. I didn't have HB issues but didn't want to have a nil tax code.

Download those forms and get going - took me months to fill them in.

sarahspain

Hi, you've worried me now!

What does this mean? my husband is working and pays tax and we receive a small amount of HB.

I rang the court on Friday and they were booking 3rd April (a friday) but we were wanting something a bit later that month so said we would ring back. Now I am thinking should I have taken it as the end of the tax year is the 5th April.

Do they just apply the nil tax code for the last day in the 2008/2009 tax year? and then from the following day it would be a normal tax code again? I'm confused! can you tell! lol

fiveyearplan

That late in the financial year they wouldn't bother with a nil tax code. If you wait until the first day of the new tax year then the nil tax code will run for the whole year unless you change jobs.

Regarding housing benefit - Merry-Gentry had problems because she had a nil tax code which meant she wasn't paying any tax through PAYE (because she was paying it to Moon Beaver) so the HB people said she earned too much to get HB - or something along those lines anyway.

If at possible go BR before the end of this tax year and save yourself a lot of hassle.

sarahspain

Who's moon beaver

fiveyearplan

That is the name of the company that you have to send your tax money to every month. I didn't want the hassle of having my tax money in my hands (too tempting to spend!) and then have to send it off to Moon Beaver.

tigerfeet2006

Moon Beever are the company who act for the OR and collect monies from NT code IPA's and income IPA's.

nervousmother

We went BR in Jan, The or told me I WOULD get a NT tax code. sent me forms to fill in for IR but I have not heard nothing since. Only one more wage left of this tax year. The OR also told me I would have a NT tax code for the 'whole' period of my BR. was she talking rubbish?

tigerfeet2006

Yup!! yes she was NM

Nil tax (NT) coding/IPAs (MSE)

From the Bankruptcy Help sticky.

I would guess what will most likely happen is the OR will claim your tax from the HMRC at the end of the tax year as it will be easier for them.