IPA's and NT tax

vodka_needed

Hello

I went BR at the beginning of May this year and have a query about NT tax and IPA if anyone can help me?

When I had my OR interview at the end of May, she didn't set up an IPA as I am going on Maternity leave in August and she said it would take a few months to set up and I could do with the extra money to buy baby things (her words, not mine - she was very nice!). She said she would ask me to complete another SOA in September ish when I am on SMP to see if there is any surplus income for an IPA to be set up.

I have today been put on an NT tax code (which I expected), but I haven't been told how to give this money to Moonbeever, although I have emailed my OR to ask.

I know the NT IPA will only last until the end of the tax year, but am I right in thinking that if I do not have any surplus income between September and my discharge date in May, then a 'surplus income' IPA will not be set up at all?

I will be going back to work after my maternity leave, but it probably won't be until after my SMP runs out, which is after my discharge date.

I hope this doesn't read like I am trying to get out of paying an IPA (I fully expected one to be set up while I was still on full pay) - I just want to know what to expect then I can plan accordingly.

Thanks for your help

dojoman

vodka_needed wrote: »

Hello

I went BR at the beginning of May this year and have a query about NT tax and IPA if anyone can help me?

When I had my OR interview at the end of May, she didn't set up an IPA as I am going on Maternity leave in August and she said it would take a few months to set up and I could do with the extra money to buy baby things (her words, not mine - she was very nice!). She said she would ask me to complete another SOA in September ish when I am on SMP to see if there is any surplus income for an IPA to be set up.

I have today been put on an NT tax code (which I expected), but I haven't been told how to give this money to Moonbeever, although I have emailed my OR to ask.

I know the NT IPA will only last until the end of the tax year, but am I right in thinking that if I do not have any surplus income between September and my discharge date in May, then a 'surplus income' IPA will not be set up at all? YES THAT IS CORRECT

I will be going back to work after my maternity leave, but it probably won't be until after my SMP runs out, which is after my discharge date.

I hope this doesn't read like I am trying to get out of paying an IPA (I fully expected one to be set up while I was still on full pay) - I just want to know what to expect then I can plan accordingly.

Thanks for your help

Just make sure you put the extra income you receive (the tax you will not pay) to one side. Yhe OR will inform you how you will pay this.