Official receiver lied to us-wife in tears!!

BB&B

”NT” tax code Income Payments Agreements and Income Payment Orders

When a bankruptcy order is made against an individual who is subject to PAYE, HM Revenue and Customs (HMRC) applies a “nil tax” code to that person for the remainder of the tax year in which they were declared bankrupt and can then claim in the bankruptcy for the amount of tax which would have been collected (plus any other money owed for previous years), as long as the debtor does not change his/her source of income (i.e. gets a new job) during the tax year in which the bankruptcy order was made.

Where the new tax code is expected to be applied before the end of the tax year an IPA/IPO should be obtained. Where the bankrupt has signed the Tax and NI Disclosure Authority, an Income Payments Agreement (IPA) should be sought in preference to an Income Payments Order (IPO), to claim the extra money that the debtor receives.

[FONT=&quot]An IPA/IPO can be made purely on NT tax code grounds and is not dependent on whether the debtor has any disposable income to make regular payments.

It is also dependant on if HMRC pulls its finger out and gives the NT code, (at this stage of the year there is a good chance they wont!). If they don't get around to it then no NT Tax IPA will go into place

Tim
[/FONT]

JCS1

The link with more detail as promised:

http://forums.moneysavingexpert.com/showthread.html?t=1064237

Advice

debtinfo wrote: »

Yes, basically the £143 pm that you normally pay in tax will be in your wage instead, you then pay the OR with this money, it is simply the money going to the OR instead of HMRC, It shouldnt affect your tax credits at all

Thank you! As long as it definately wont stop my working tax credits!
All this is so confusing.
You lot on here are so intelligent!! Glad i posted now!

Just have to see if i get my working tax on 24th december. Fingers crossed because thats what will buy is our food over xmas and new year

Advice

BB&B wrote: »

”NT” tax code Income Payments Agreements and Income Payment Orders

When a bankruptcy order is made against an individual who is subject to PAYE, HM Revenue and Customs (HMRC) applies a “nil tax” code to that person for the remainder of the tax year in which they were declared bankrupt and can then claim in the bankruptcy for the amount of tax which would have been collected (plus any other money owed for previous years), as long as the debtor does not change his/her source of income (i.e. gets a new job) during the tax year in which the bankruptcy order was made.

Where the new tax code is expected to be applied before the end of the tax year an IPA/IPO should be obtained. Where the bankrupt has signed the Tax and NI Disclosure Authority, an Income Payments Agreement (IPA) should be sought in preference to an Income Payments Order (IPO), to claim the extra money that the debtor receives.

[FONT=&quot]An IPA/IPO can be made purely on NT tax code grounds and is not dependent on whether the debtor has any disposable income to make regular payments.

It is also dependant on if HMRC pulls its finger out and gives the NT code, (at this stage of the year there is a good chance they wont!). If they don't get around t
o it then no NT Tax IPA will go into place

Tim
[/FONT]

Thank you. Although the ipa confuses me. All i understand is the tax nt code. Thanks

lilibet1

Have you been to tell your wife? She will be so relieved - anxiety and depression are dreadful things to deal with. I can assure you that the posts you have had tonight will be right - they know there stuff!!

x

JMV

OOOOPS - lots of posts when I was still posting - ignore me


Could someone explain Nil Tax Code to the OP (and me)?

I think he may be too upset and angry to understand what you are asking...

I realise it may not be what's going on but it does seem the most likely and it doesn't always come up when one is asking for advice - and maybe OR's assume we all know about it...

Many Thanks

Advice

lilibet1 wrote: »

Have you been to tell your wife? She will be so relieved - anxiety and depression are dreadful things to deal with. I can assure you that the posts you have had tonight will be right - they know there stuff!!

x

Hi

Yes ive just woke her up and told her an she is relives but worried it will somehow effect our working tax credit because as soon as there is a change in circumstance then HMRC always stop credits.

Thank you for helping me understand my letter.

Cant understand why the official receiver didnt mention this on the phone.

fermi

BB&B wrote: »

[FONT=&quot]Tim
[/FONT]

Hi Tim. Nice to see you here.

If you are the Tim that sig matchs with...... :cool:

tigerfeet2006

This is something that should have been explained to you when you took advice before you went BR.

Who did you take advice from?

fermi

Advice: Don't worry about the tax credits.

debtinfo wrote: »

Yes, basically the £143 pm that you normally pay in tax will be in your wage instead, you then pay the OR with this money, it is simply the money going to the OR instead of HMRC, It shouldnt affect your tax credits at all

^^^^^ is spot on as far as I know.