Is the Zero tax code?

markbass

A dead give away of your bankruptcy to an employer? or can a zero tax codes be implememted for other reasons?

cheers mark.

confused76

hi i know i am worried about this, but i have been advised that there are lots of reasons why you'd have a zero tax code and it won't create a problem, although i have no idea what those other reasons are!

tigerfeet2006

Yes, there are numerous reasons for a Nil Tax Code.

One of the OR's that post's on here tells a story of an employer who rang the Her Maj's tax bods up and asked why his employee had been given a Nil Tax Code, to be told very firmly "because we said so!" They are bound by the data protection act so cannot reveal why you have it, so are the payroll people and can't gossip about it and if they do can get in serious trouble.

markbass

Thanks for the replies, only i could be starting a new job shortly and theres only a handfull of people working there! i suppose a little bit embarrasing thats all, and when you start a new job you dont really need that worry on your mind!

fermi

Here: IPO / IPA (Income Payment Orders and Income Payment Agreements)

HMRC applies nil tax codes for various reasons, and the new tax code will not tell your employer you are bankrupt.

Plus as already mentioned, an actual examiner for the OR posted this somewhere ages ago.

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

tigerfeet2006

fermi wrote: »

Here: IPO / IPA (Income Payment Orders and Income Payment Agreements)

Plus as already mentioned, an actual examiner for the OR posted this somewhere ages ago.

Thanks for finding that Fermi

Mark are you already BR or about to do it?

markbass

tigerfeet2006 wrote: »

Thanks for finding that Fermi

Mark are you already BR or about to do it?

Hi tigerfeet, yes i am currently BR...coming close to 5 months now...the job i think i might be getting is part time 30 hours a week and i'd boost it with working tax credits, currently unemployed and have been since start of BR.

fermi

markbass wrote: »

Hi tigerfeet, yes i am currently BR...coming close to 5 months now...the job i think i might be getting is part time 30 hours a week and i'd boost it with working tax credits, currently unemployed and have been since start of BR.

In that case, because you source of income would be (technically) changing, HMRC should not put you on a NT code anyway.

So it shouldn't be an issue.

markbass

fermi wrote: »

In that case, because you source of income would be (technically) changing, HMRC should not put you on a NT code anyway.

So it shouldn't be an issue.

Really?

Thanks for that info fermi.

DarkConvict

If you get a new job whilst on the NT code, or plan to get a new job i believe the NT code is not applied.

But either way, i would not worry about the tax code. As they say, no one is allowed to discuss it and the NT tax code is applied in several circumstances.

Just make sure that if the NT code is applied, that the tax that you would otherwise pay is either saved or paid to the official receiver, depending on what instructions you have been given by the official receiver. As if you don't pay tax you have additional income that should be used towards your bankruptcy debts, although in some case it isn't if you have a low income so do check with whoever is handing your bankruptcy .

markbass

Thanks for that DarkConvict.