Moonbeaver tax

newmoneysaver1976

Hi, Im confused. From what I hear I am not supposed to be paying tax on my salary whilst bankrupt and I am supposed to be paying it to moonbeaver but I have never heard from anyone called moonbeaver and my employer still takes my tax off my salary like they always have. same for my hubby who is also bankrupt. we have been bankrupt since march 2012 and i have never had any tax not taken off for me to pay to moonbeaver. i am quite worried about this now to be honest

fermi

You are fine.

HMRC only apply the Nil Tax code that results in you have to pay Moon Beever until the end of the tax year. i.e. at the beginning of April you return to normal PAYE etc anyway.

In your case as you went BR in March, then it's likely that HMRC never had time to get you tax code changed before it would have reverted back anyway, so it never happened at all.

Many people going BR around March time have exactly the same thing. It's nothing to worry about.

GazHatesBanks

The No Tax (and payment to Moon Beever) runs to the end of the tax year in which you were declared BR i.e. 5th April.

As you were made BR in March this year, HMRC would not have had the time to issue a NT tax code and you would have reverted to a standard code in the new tax year anyway.

Nothing to worry about from your side as the OR will sort out any tax implications direct with HMRC.