Reasons for Nil Tax

smegs1978

Hello,

Just wondering if someone could list the reasons for being given a NIL tax code other than bankruptcy?

Regards,

fiveyearplan

Just to say also, it is none of anyone's business either as to why you'd have a nil tax code - not even your payroll department.

It is just because HMRC say so!

philnicandamy

fiveyearplan wrote: »

Just to say also, it is none of anyone's business either as to why you'd have a nil tax code - not even your payroll department.

It is just because HMRC say so!

yep...forgot the important bit!:p

fiveyearplan

I think it was JCS1 who told us that one. Apparently that is exactly what one nosey parker got told from HMRC when enquiring as to why someone was on nil tax code. I presume it shut them up.

fermi

fiveyearplan wrote: »

Just to say also, it is none of anyone's business either as to why you'd have a nil tax code - not even your payroll department.

It is just because HMRC say so!

Exactly!

I noticed an examiner post this a while back. I hope it's true.

A bankrupts employer (being nosey) once requested a full breakdown into why his member of staff was on a nil tax code, and had a 27 page reply with every possible reason this could happen the guide book that explained it and a little note at the end that said

"cause we told you to, and will not tell you why"

HMRC is a bit of law on to themselves

JCS1

Employer should not query why you are on a specific tax code, it's confidential between you and HMRC (and HMRC will tell them where to go!). You are normally sent a tax code notification given reasons why, your employer gets a shortened version of name, NI number, tax code, date of change.

I used to process payroll, and with tax code change you just enter on system and file, you really don't look at them in depth. And if payroll person suspects why, then they are in a confidential position.

opensource

HMRC won't tell you because most of the staff there don't know.

The reason is, your tax from the date you were declared bankrupt up until the next tax year does to the Insolvency Service, the Official Recievers of your estate. This is NOT shared with your creditors.

This is to help fund the Insolvency Service as the Bankruptcy fees alone can not do the same. And like any other government department, they can NOT be in the red at the end of the tax year. If they were, that would be just too embarrasing.

JCS1

opensource wrote: »

HMRC won't tell you because most of the staff there don't know.

The reason is, your tax from the date you were declared bankrupt up until the next tax year does to the Insolvency Service, the Official Recievers of your estate. This is NOT shared with your creditors.

This is to help fund the Insolvency Service as the Bankruptcy fees alone can not do the same. And like any other government department, they can NOT be in the red at the end of the tax year. If they were, that would be just too embarrasing.

Nil Tax codes can be shared between creditors, but OR fees (start at £1,715 ) are paid first.