Tax Code....Will it change??

sweedart1

Hi everyone,

Here i am again with yet another question.....

Will my tax code change for definate? or does it depend on certain circumstances? Id rather my employers didnt find out about my BR.

Thanks All

Sweedart1

Richard_S

sweedart1 wrote: »

Hi everyone,

Here i am again with yet another question.....

Will my tax code change for definate? or does it depend on certain circumstances? Id rather my employers didnt find out about my BR.

Thanks All

Sweedart1

Hi Sweedart1,

Your tax code will almost certainly change, it sometimes takes a while but it does happen in most cases. Bankruptcy is not the only case that triggers an NT Code so they may well not realise anyway. I can't remember what the other events are but no doubt somebody else will and when it comes back to me I'll post again.

Regards

Richard

owetoomuch

If someone else could tell us what other reasons you could be given a NT code for that would be great, the reason is that I also dont want work to know I have gone BR

wherediditallgo

You can get an NT code for reasons such as having paid too much tax in a previous year, or if you had a second job & paid too much tax in that one. For instance, last financial year I did some extra work for a few months & tax was levied at the emergency rate instead of the correct one. The Inland Revenue admitted the mistake & gave me a cheque for the difference. However, a friend paid tax at the emergency rate for a year before the mistake was spotted, & she was given the NT code for the following year. She was informed that if she continued in the same employment for the year after that, the NT code would be put in place again if the remaining balance due to her was high enough to warrant it, or a cheque issued for it. I'm sure the payroll & IR know of other instances where the NT code is applied.

I honestly believe that if your employers find out you're BR, it's far more likely to be because either someone's talked about it (which is just one of the reasons why I've told no-one at work about my BR) or someone's seen the classified advert in the local paper, rather than just because the IR have told them to apply the NT code. Even if your employers do find out about it, they are bound by the Data Protection Act to respect your confidentiality & not discuss the matter with anyone who doesn't have to know about it. Unless your contract requires you to inform them of it you don't have to discuss it with them if you don't want to, so just play dim if the subject comes up.

earwig

my oh tax code didnt change we just had to send wages slips in to prove we was still paying tax

bizzylizzy

I went BR in Dec 2006 and I'm still on NT code. I thought it would change back to normal after April but May's wage slip still shows NT. I'm confused as I thought it was just until the tax year finished. Any thoughts?

wherediditallgo

bizzylizzy wrote: »

I went BR in Dec 2006 and I'm still on NT code. I thought it would change back to normal after April but May's wage slip still shows NT. I'm confused as I thought it was just until the tax year finished. Any thoughts?

As far as I'm aware, the NT code is only applied in the tax year that you've gone BR. You should contact your local tax office & ask for written confirmation that it is correct and/or contact the OR for clarification, otherwise you might find that you owe tax for this year.

fermi

wherediditallgo wrote: »

As far as I'm aware, the NT code is only applied in the tax year that you've gone BR.

That is absolutely correct:

1) You must contact HMRC to get your tax code set back to normal.
2) Do not spend your NT contributions from the begining of the tax year, or give them to the OR. This money from the beginning of the tax year to now belongs to HMRC and they will ask you for it once the mistake has been rectified