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Including tax underpayment in DRO
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I was on the wrong tax code last year because I had two jobs, and I owe £99. As I understand it, I can choose to pay that as a lump sum by the end of January 2013, or I can have my PAYE tax code for 2013-14 adjusted to collect it gradually from my earnings.
The thing is, I might need to apply for a debt relief order by the end of 2012. I don't know what my income will be from October, and I might have to default on my debts. How would this tax payment be dealt with? I'm already quite near the £15000 limit with my other debts, so I would rather let it go into next year's PAYE code if I can.
Would I be given a nil tax code for 2013-14 under a DRO, in the same way as bankruptcy?
The thing is, I might need to apply for a debt relief order by the end of 2012. I don't know what my income will be from October, and I might have to default on my debts. How would this tax payment be dealt with? I'm already quite near the £15000 limit with my other debts, so I would rather let it go into next year's PAYE code if I can.
Would I be given a nil tax code for 2013-14 under a DRO, in the same way as bankruptcy?
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Comments
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Hi,
A DRO has no effect on your tax code.
If the underpayment has been demanded then it is a debt that must go in to your DRO.
DDDebt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***0 -
By "demanded", do you just mean they've told me I owe the money, or that they are insisting I pay it as a lump sum? The letter I received offers me a choice of having my PAYE code adjusted instead.debt_doctor wrote: »If the underpayment has been demanded then it is a debt that must go in to your DRO.0
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It is a debt, and would need to be included in the DRO:jEngaged 25/12/11 :j
:smileyheaMarried the man of her dreams and became Mrs M on 26th April 2013 :smileyhea0
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