Moonbeaver/BR advice

Julianuk

Hi, i got a couple of questions ondered if anyone could help me please,
I went Bankcrupt Feb 2009 and have been discharged in Oct 2009 I have been paying Moonbeaver £70 a month through S/O since June last year which is for 36 months.

1.First questions is I've been reading on here about nil tax codes my tax code had always reamined the same is this right, is it likely to change?

2.I have been offered a council house which I do have the right to decline but obviously don't want too...I will be saving £250 a month:T on current rent....I read different opinions i'm discharged so do i declare to moonbeaver also read that there only interested in a increase inwages(which i havent had... this is a decrease in out goings)

katalyst2k

You would not of been on a NT Tax code due to your bk being so close to the new tax year.


Kat

Julianuk

and it doesnt apply once you've been discharged or in your 2nd and 3rd year of payments to moonbeaver?

alastairq

hi

Hi, i got a couple of questions ondered if anyone could help me please,
I went Bankcrupt Feb 2009 and have been discharged in Oct 2009 I have been paying Moonbeaver £70 a month through S/O since June last year which is for 36 months.

1.First questions is I've been reading on here about nil tax codes my tax code had always reamined the same is this right, is it likely to change? No. NT would only apply during a tax year following BR.....tax is included in the BR.....Since the Tax year following your BR only had a couple of months to run, it would have been deemed not worth the hassle. Once the new tax year starts, so does your new tax code.

2.I have been offered a council house which I do have the right to decline but obviously don't want too...I will be saving £250 a month on current rent....I read different opinions i'm discharged so do i declare to moonbeaver also read that there only interested in a increase inwages(which i havent had... this is a decrease in out goings)

No, no need to declare. The OR [Moonbeever in practice] needs to be informed of income changes, only whilst undischarged.....or following ED/AD up until an IPA ceases. [this allows for an IPA to be reduced/removed if income drops, for example.]

Hope this is right and helps

katalyst2k

No NT Tax code only applies to the current tax year you went bankrupt in.

Julianuk

so alastair just to comfirm I do not declare as I'm already discharged although i'm massivley better off every month,also once my payments are finsihed in about 25months is that it i just stop paying and move on?

sorry to repeat just i can't believe or don't believe something can go so right for me in my life:j

debtinfo

you need to declare any change in circumstances not just a change in income

Julianuk

oh ok even though i'm discharged....... alastair said no and you say yes mate please HELP need to know whats 100% before I make a decision....

skylight

If you are saving that amount of money per month then you will obviously need to declare the change of circumstances.

Of course, if its a house then council tax and utilities are likely to go up. Have you claimed landline etc in your SOA. You'll now need contents insurance etc. Are you moving in with anyone?

Your circumstances have changed and your outgoings may be more too. And they cannot take all of that money saved per month, only a % of it, so you will still be better off than you are now.


And its great if you have been offered a council place - there are so few about these days!

skylight

The NT tax code is only applied in the BR tax year and not after. If one was not implemented last tax year (09/10) then don't worry about it. You will have paid tax to HMRC and the OR will claim that back directly from them.

A NT tax code is not applied after the next tax year or for subsequent tax years.

skylight

Lastly, you are in an IPA. You have a legal obligation to inform them of any changes of circumstances until the IPA finishes.

It goes both ways - if you were to lose your job the IPA would cease and if your circumstances change for the better you may end up paying more.