No IPA/IPO but have just got nil tax code

jennie65

I have just been told i am on a nil tax code, came as quiet a surprise, even more so to get on here and find out a company called Moon Beever might get in touch and ask for it instead. eh? Sounds a bit hokey to me.

I was never asked by the OR to set up an IPA or an IPO but the PAYE at the HMRC have issued an NT. What is this all about, Who do I contact to find out what exactly is occuring here as my local council WODC will soon be on my case to reduce housing benefit as have more disposable income without paying tax. Its all very well saying put to one side but when you work to as tight a budget as I do if its in my bank account it will go out of my bank account and as it took enough effort to get one account cant see me getting another one to stash this money in, and how would I know how much of my salary is the tax each month.

It wasnt broken why did they have to fix, I was told by OR that i didnt even warrant an interview and no further action would be taken and then this happens, so what do i do now.

Getting a headache now and feeling a little desperate again, supposed to be taking the kids away to wales next week now shall just sit and worry all week instead of having fun. Night mare :mad:

lifebeginsagain

When did you go BR? we went BR in April and haven't had a nil tax code put in place yet.

GotToChange

Speak to your OR office again as a matter or urgency.

I didn't have a nil tax code as it was too far into the year so can't speak from experience but I thought that the money that would have been paid in tax was "claimed"from you by some other means (I know there are others on here who know so hang on, someone will be able to tell you); it can impact on your HB if they aren't aware and actually do think it's an increase in your income for some other reason. Again, best to talk to the benefits section and see what the normal procedure is.

Try not to panic - you can get the answers on here and not have to worry on your hols.

x

nervousmother

A NT tax code is quite normal, you will only get out of getting one if you go BR just before April. The code will last until next april or until you get different employment. You have to work your tax out and put it to one side until moon beever get in touch. I do remember someone else on here getting a headache due to the NT code and housing benefit.
Lifebeginsagain what date did you go BR in april?

jennie65

i went bankrupt 15th April 2009, and was told by court and OR that no payments would be taken as did not have sufficent disposable income. I had just got rid of all the nasty calls and now this happens to cause more stress.
If i am not on an IPA or IPO then why do I have to pay some unknown company call Moon Beever anything when i havent ever heard from them

peachyprice

A nil tax IPA is entirely different to an IPA in surplus income, just because you have no surplus IPA it doesn't mean you won't have a nil tax IPA.

You have been given one because you pay tax and have gone BR at the begining of the tax year, it's a standard thing.

The amount you have to put to one side will be the difference between your normal pay and the amount you have received.

jennie65

reading info about it its HMRCs way of making sure PAYE people are treated the same as self employed people. And as self employed people have no liability for tax in the tax year if gone bankrupt then the feel the need to share the love with PAYE people, but if we just have to pay it over to some random solicitor we have never heard of for god knows what and to god knows who then what the hell is the point of it. Id rather my taxes went where they are supposed to go thank you, not into the pockets of some debt collector.

peachyprice

It's not going to a debt collector

They are collecting on behalf of the Insolvency Service who will use it towards paying you BR fees of £1700+. Anything left will go to your creditors.

The £350 fee you pay is just part of the total costs, the rest has to come from somewhere, namely the govrernment, collecting your tax for your BR year is just cutting out the middle man.

debtinfo

Hi Jennie, best to ring you OR and ask if they will be applying a NT code IPA, How much is your tax normally, if its less than £50 you MAY not have to give it up. You wont have to pay anything to Moonbeever without signing an official agreement with the OR

jennie65

I have spoken to the OR and they know nothing, there is nothing on my record about doing an IPA, the only thing they have on it is the possibility of discharging me early apparently. They have not nor do they expect to contact Moon Beever and think the HMRC are in error. Think I might just buy premium bond with the money and then can cash them in when they sort out who should have the funds

debtinfo

Hi jennie can you provide some details, when did you go bankrupt, When you say you just got a NTcode, do you mean that you just noticed it on the wage slip or has someone contacted you to ask for payment. Howmuch tax do you normally pay