nil tax code

caro50

Hi

I just want some info on the nil tax code - if we went bankrupt in january 2010 does that mean we will only have a nil tax code until April 2010?
Between me and my husband we pay about £1500 tax on our earnings each month so does this mean we might get t avoid and IPA or IPO ?

Trom

caro50 wrote: »

Between me and my husband we pay about £1500 tax on our earnings each month so does this mean we might get t avoid and IPA or IPO ?

The two are not related. The IPA/O is based on your income after tax.

peachyprice

If you go BR in Jan it's hit and miss whether you'll get the nil tax IPA, although as you pay high tax the OR may well pursue this.

It really doesn't matter to you either way though, if you do get the NT IPA your tax goes to the OR, if you don't it goes to HMRC, either way you pay the same.

The NT IPA has nothing to do with the excess income IPA, you will still get this of you have a surplus of over £99 regardless of whether or not you get a NT IPA.

HTH

CG77

Hi caro,

yes you would only have a nil tax code until April, although sometimes if it gets too near to the end of the financial year by the time they get round to applying the NT code, they don't bother doing it at all. Having said that, however, I would guess with such a high amount, they may well hurry things along and get one in place quite quickly, but still only until the end of the financial year.

With regards to the surplus income IPA, this is totally separate and if you are deemed to have enough surplus income after your allowable expenses, you will still get an IPA. This is regardless of whether or not you have a nil tax IPA. They are totally separate things.

Hope that helps.

CG. x

CG77

Ooooooooh too slow again!!

CG. x

peachyprice

CG77 wrote: »

Ooooooooh too slow again!!

CG. x

They call me twinkle fingers :rotfl::rotfl:

philnicandamy

You do indeed have to get up early to beat the lovely peachful peachy

CG77

peachyprice wrote: »

They call me twinkle fingers :rotfl::rotfl:

...and they call me sausage fingers :rolleyes:

CG. x

philnicandamy

and they call me.......

probably best not to go there before the watershed...

leftatthelights

Hi,

Just a quick one on this nil tax code.
I have got this but the paperwork has only just been sent so it might be a while before it is implemented???
Anyway, how is it taken from your wages?
My OR said that I wont pay tax and I have to pay them the tax (at an agreed amount) from my wages.
How is this done, a standing order or direct debit etc???

philnicandamy

leftatthelights wrote: »

Hi,

Just a quick one on this nil tax code.
I have got this but the paperwork has only just been sent so it might be a while before it is implemented??? can take a bit sometimes..
Anyway, how is it taken from your wages? put to one side the tax you'd usually pay
My OR said that I wont pay tax and I have to pay them the tax (at an agreed amount) from my wages. correct...the OR's have a contract with "moonbeever" they work on behalf of the OR for NT tax taking and this will be DD once they contact you..
How is this done, a standing order or direct debit etc???

Just a few thoughts