Question on tax and bankruptcy - please help

newmoneysaver1976

Hi

I am so confured here :mad:

I hear that I will be going onto a nil tax code and have to pay the tax to moon beaver or rtlu or official receiver. I don't understand what I am supposed to do. I still pay tax on my salary as I always have. I have never been given any tax back so I don't understand how the official receiver or moon beaver will be getting my tax for the bankruptcy year. I am not getting it so how do they get it. I am so confused. We have been bankrupt since March 2012. i have had a letter come to work asking how much i earn but nothing about my tax code changing.

fermi

It's up to HMRC to send the tax code change notification to your employer, so until they do that you will continue to pay tax through your wages as normal.

If or when that does change, then tax will no longer be taken off your wages. And you will have to pay what would have been taken off to the OR/Moonbever instead.

HMRC are frequently very slow at sorting these things out, so until/unless your tax code changes then there is nothing for you to do. Nor is it your problem.

Contracts_Engineer

lets say you pay £400 income tax and £140 national insurance

on a nil tax code the £140 NI will still be paid but the £400 income tax will be paid in your wage.

You will then set up a standing order to moonbeaver for that amount.

If your circumstances change and thus the tax you pay changes then a new figure will be worked out.

this ran for myself for one tax year (april to april) and then i was on a temporary tax code until id completed my self assessment tax form and a new code is generated.

Hope that helps

OutofDebt-NOT-OutofDanger

As you were made BR in March and any NT coding would only last until 5th April 2012 (end of tax year in which you were made BR), I would assume that there was no time for HMRC to change the code. So it's likely that you will not see a code change.

fermi

OutofDebt-NOT-OutofDanger wrote: »

As you were made BR in March

I missed that.

Yes, it likely that HMRC never got around to changing it.

So the OP should not see any change made now.