Nil tax code

sam222

Hi there

would sombody plz say what is nil tax code and do i have to be aware of it ,or does it concern me at all,this is where i am::i was declare br.few weeks ago done my interview with or i don't work becuase of my ill-healt and i dont pay any ipa,,,,,,,,,,,,,,,,many thanks

alastairq

hi.

Nil Tax code is [NT] is a tax code issued under PAYE, whereby the recipient pays zero tax.
This may be due to an overpayment in the past.....or, more likely in our cases, where the income tax for the tax year BR is petitioned is included in the BR.

It is a method whereby PAYE tax payers have parity/equality with those who pay tax once year.

Since a NT tax code will essentially lead to a 'surplus of income', the amount normally paid to HMRC is in fact paid into the BR estate [via Moonbeever, usually]....for the duration the code is in place. U][I]the NT IPA[/I][/U

This will be either [a] to the end of that tax year, or until the BR individual starts a new job, when they get a new tax code.


I your case, since you don't pay tax, either PAYE or annually, this does not affect you.