IPA.... 12 months or 3 years?

Navigator1

Can anyone advise about the term for an IPA?
I have already had brilliant advice on this forum about other matters but just want to clarify this point.
Who sets the term of an IPA?
Is it for 12 months or 3 years? Or even something different?
Please advise.....
Thankyou.

fermi

The OR sets the term in the agreement. It can be up to 3 years, which in most cases it is.

What_to_do_now?

I'm too really confused about the term of the IPA. We are now approximately 7 weeks away from being discharged - Bankruptcy date was 12 April 2012. IPA that is in place is only for 1 year - is this normal, or should we be expecting another agreement before the April date? Also, am I right in thinking that unless the OR sets another agreement before 12th April, they can't issue one once discharged?? Sorry if asking silly questions but this is really worrying us - thank you

debt_doctor

What_to_do_now? wrote: »

I'm too really confused about the term of the IPA. We are now approximately 7 weeks away from being discharged - Bankruptcy date was 12 April 2012. IPA that is in place is only for 1 year - is this normal, or should we be expecting another agreement before the April date? Also, am I right in thinking that unless the OR sets another agreement before 12th April, they can't issue one once discharged?? Sorry if asking silly questions but this is really worrying us - thank you

Hi,
I wonder if your IPA is a nil tax NT tax code IPA?, as a standard IPA for 1 year is very unusual.
An NT IPA collects the money you would have paid in tax from the date of your BR until the end of the tax year you were made BR in.

In your particular case, this would be 1 year.

DD

What_to_do_now?

Thank you for the reply
We had a arrangement with Moon Beaver until December. This was then supposed to stop and a change to a NIL tax code until April 2013. The NIL tax code part hasn't happened yet and Tax is still being paid. Were really not sure what to do?

alastairq

Carry on as normal, do nothing...if an NT code kicks in, inform Moonbeever.....and set aside [ie, save?] the amount you think you normally pay in tax.

MB will want sight of the appropriate wage slips....and will contact you with their estimate of what should be paid each month.

If you disagree, say so to them.

What_to_do_now?

Thank you for your advice.
Can I just check, if we don't hear anything before the 12th april 2013 (discharge date) can we assume that they can't arrange another IPA?