tax after br

sizzler

Just wanted to say thanks to all in thread. Some intresting data and very helpfull. I havent started my new self employment as yet and waiting to see if some of my old customers will still deal with me.

Also at colege part time for last three years doing my electrical training. Hopefully might get a job. Have tried and no luck so far.

Hi THATSYOURLOT, WOW AN ipa AND NO TAX. iF YOU DONT MIND ME ASKING WHAT SORT OF PROFITS DO YOU HAVE TO MAKE BEFORE THE IPA.

If this question is to personal please do not reply or you can PM me.

Thanks to all. Having a better day today not so dizzey.

Regards Sizzler:T:T:T:T

sizzler

Hope this might cheer people up had a few cans with wife last night and tried to explain to her about moon beaver.

She said its that internet site where you can send greetings cards.

Well we had a good laugh.

Regards sizzler:rotfl::rotfl::rotfl::rotfl:

Paulgonnabedebtfree

debtinfo wrote: »

Hi sizzler, when you are self employed and go bankrupt, what officially happens is that you cease trading on the day of the bankruptcy. You are free to start up what is a new distinct and seperate business the next day. As this is new employment you will be taxed in the normal way (except it will be a short year, from the day of the BR to the new tax year) and so will not get a NT code

Does that mean it would be more beneficial to go BR at a point where you would be likely to profit about 6k (and no more) between the BR date and the end of the tax year?
Not suggesting that anyone would of course

Mrs_Malaprop

thatsyourlot wrote: »

What happens when you dont earn enough to pay tax in the first place??

I am self employed (sole trader) I dont earn enough to pay any tax & have been given a nil tax code plus have to pay an IPA of £110 per month

Just wonderd whay I had been issued with the nil tax code when I have never earnt enough to pay tax anyway??

If you are Self Employed you would not of been given a Nil Tax code, are you positive you have? As debtinfo points out if you are self employed then the company closes on the day of bankruptcy and re-open the next day.

Did you ever put your SoA up on the boards for one of the people here to check over for you? Did you ask for a break down of figures when the OR gave you an IPA?

thatsyourlot

YES I DID PUT MY SOA UP ON THE BOARDS THANKYOU.

I have got my wires crossed with the nil tax code thing, its because I got a new tax code to use for when I file my tax return in April 2010 & thats what puzzled me a bit.

NOBODY has ever told me to close my business down on my br date & then start up again the day after, so thats something else thats puzzled me.

My OR never mentioned anything about this EVER

sizzler

Hi The OR does not give you much guidance on these issues.

I think its part of the BR procedure you are allways looking for answers.

Cheers Sizzler:rotfl:

Mrs_Malaprop

No need to shout at me, I didn't know so asked a question.

I have just rung the Insovency Service helpline to clarify this and they have said to me that you are supposed to have your records up to date to the day of your bankruptcy, you don't trade on the day of your bankruptcy but can continue trading after your bankruptcy hearing in what is effectively a new business.

Debtinfo works for the IS so he generally knows what he is talking about.

If you are struggling with your IPA then talk to your OR about it, ask how he got the figures for the IPA. Has your income dropped since it was put in place? If so it can be reduced.

DarkConvict

I don't like the idea of moon beaver, my friend who went BR has been on NT for a while now, and i've told him countless times you will pay it back to the OR at some point before April. But he went BR because he spends, spends, spends so putting it in his bank account is a really really bad idea, and i'm sure he has now atleast spent 2 months if not more of his tax money which he shouldn't do. It would be better if they could just tag it onto his IPA/IPO, so it is taken before it hits his bank account.

Mrs_Malaprop

But an IPA is not taken out of his wages before they hit his bank account. There is a DD or SO set up to pay it to Moon Beaver.

Bankruptcy is an oppurtunity to reacess your life and stop all the bad habits and get your life back in order and start living how you should be living and dealing with things like IPA's and NT code IPA's helps us get our act together. He obviously hasn't learnt his lesson.

get_me_debt_free

What happeneds if your on benefits?