zero tax code is different to an IPA, isnt it?

Poorcouple

Hi All,

We have OR interview tomorrow... Really worried about the car, but que sera sera.

If we get a zero tax code, I understand that any tax we would have normally paid between now and April 1st next year, goes back to our creditors?

We dont see the money, nor do we really lose it as it would have went to the tax man anyway.

This arrangement is different to an IPA, right? They're not linked in any way?

luvchocolate

They are not linked but sometimes its called an I.P.A which is a bit confusing!!
I paid my by standing order direct to my trustee and set in up for the no of months left in the current tax year, some people make their payment to the O.R via Moonbeever.
As you said this is money we would normally not see anyway so you are just paying it to a different person. x

2kadmin

Hi,

I got a NT or zero tax code, which was administered by Moon Beaver. You get more in your take home pay which you need to pay to the OR, I did this via a standing order so I never really saw the money.

This lasted until the end of the financial year when I got a coding change notice from the tax office, I informed Moon Beaver who sent me an acknowledgement. Job Done!

I believe it is different to an IPA, an IPA is where the OR deems you have spare cash left over which they will collect for an agreed period of time this could and often does extended beyond your discharge date, whereas my NT didn’t last past that fiscal year.

Hope this Helps.

alastairq

The NT IPA was referred to as such [on my paperwork] because...since it arises due to one's income tax falling into the BR.....one receives a temporary 'surplus'.

Moonbeever will make a estimate of the amount due.

If this is greater than what is actually received [especially if one's wages are variable] then adjustments are made.

However, wage slips may need to be forwarded to Moonbeever....they adjust the figures to give a balance owed each month [or did, in my case]...

At the time, These sums went towards the administration costs of the BR.

[really a case of the Government robbing Peter to pay Paul??}