IPA for nil tax code

homersimpson316

Sent off my letter today for niltax code IPA. It states they will take 195 a month. My tax is usually around 53 a month so i may a little spare, but.... If i say i miss a few days off work or get struck down with swine flu then i dont get paid (until after 3 days SSP) which means i wont be paying 195 tax for that month?

Surley i should only pay what tax i pay a month and not a set amount?

debtinfo

It is to much of a hassle for them to change the agreement each month so they take an average. If you Tax turns out to be significantly different yu should let them know and they would change it. However not for a few quid

homersimpson316

Ok thanks, is the IPA for taking tax the same as an IPA for surplus outgoings over £100. As in it last for 3 years, the letter stated it would finish in march.

I dont have an IPA for surplus as i have less than £100 a month but if you get one doesnt it last for 3 years?

wurzella

No, the nil tax thing will end at the end of the tax year, april 5th 2010. Then you'll go back to paying tax as normal.

homersimpson316

Thanks alot, so does everyone who works and pays a certain amount of tax have to have an IPA for one?

wurzella

I was under the impression that this only happened when HMRC was one of your creditors, I could be wrong. Can't see why they'd change it if you don't owe them any money though. I'm sure someone will give us a difinate answer :rolleyes:

debtinfo

There are a few exceptions, People who are not PAYE, People who pay a very low amount of tax (costs to collect it). People who go bankrupt near the end of the tax year not enough time to collect it

debtinfo

Again it is to do with convenience, They switch everyone to a NT code and then put in a large claim in many bankrutcys at the end of the year

lifebeginsagain

We have completed an IPA for the nil tax code but as yet our code hasn't changed and we are nearly four months into our BR.

As a previous poster said it only remains in place until the end of the tax year.

When did you go BR? has your code changed yet?

fermi

wurzella wrote: »

I was under the impression that this only happened when HMRC was one of your creditors, I could be wrong.

Nope. I think you have got the wrong idea there.

homersimpson316 wrote: »

Thanks alot, so does everyone who works and pays a certain amount of tax have to have an IPA for one?

As well as the exceptions already mentioned:

- If you change employer/source of taxable income then your tax code should also revert to a normal one. The Nil Tax code IPA would then end.
- If the amount of tax is less then £50 per month then the OR/trustee will usually consider that uneconomic to collect via an IPA, so won't apply one.

homersimpson316

I went BR 3 weeks ago and sent off the forms today for the NIL Tax code IPA.

It states on my letter it will last till the end of the tax year (April 2010)