NTIPA and IPA

Wayforward

Hi guys , bit confused :mad:

I have been asked to sign for an NT IPA , with the estimated payment being what i put on my court docs when i went bankrupt.

I have spoken to the OR who has advised as Im still liable for council tax on my old property for now then I dont have enough surplus for an IPA. So for now I will pay the collection agent my tax for the rest of the tax year.

Now here is where im confused , where do I stand with an IPA ? my wage does change month by month , on a basic month I have no surplus (there may be a little once im not liable for my old council tax) then other months there will be surplus due to bonus payments(even with the council tax i have to pay now) ?

Am i actually getting an IPA here ? or do I just pay the NT IPA then after April next year I have nothing to pay ?

Thanks

Action_Jackson

The NT IPA is just to collect payments that would have gone for tax. I believe it lasts just for the tax year in which you are BR. It is not the same as the three year IPA used to collect surplus income.

You will avoid a 3 year IPA if your income shows no surplus during your 12 months BR period, as one cannot be started after discharge.

Wayforward

Thank you , sort of clears it for me , I think haha.

So basically , im not on an actually IPA (yet) ? I did ring the OR but she wasnt really clear , I advised that the tax payment they have estimated is higher than what i would probably see next month due to my wage being very different each month (varys by upto £800 currently , so some months have surplus others dont.

The OR said as I dont have any surplus they have just set up the NT IPA , however going off my last 12 month wage slips there is plenty of surplus on average (due one very high bonus i got).

Action_Jackson

Wayforward wrote: »

Thank you , sort of clears it for me , I think haha.

So basically , im not on an actually IPA (yet) ? I did ring the OR but she wasnt really clear , I advised that the tax payment they have estimated is higher than what i would probably see next month due to my wage being very different each month (varys by upto £800 currently , so some months have surplus others dont.

The OR said as I dont have any surplus they have just set up the NT IPA , however going off my last 12 month wage slips there is plenty of surplus on average (due one very high bonus i got).

That's odd, as bonus payments made during BR are considered as income. Was the bonus payment made before BR?

As long as you have been completely honest with the OR, if they have decided that you shouldn't be subject to a 3 year IPA, then I'd count my blessings.

Wayforward

Action_Jackson wrote: »

That's odd, as bonus payments made during BR are considered as income. Was the bonus payment made before BR?

Well I sumbited wage slips for last 10 months, bonus payments had been made on 7 of these , ranging from 200 , and even one at 1300 too , so overall surplus when averaged out. Im at a loss and not getting a good answer from the OR on it either.

Action_Jackson

How long have you been BR? They can start a 3 year IPA at any time during your 12 months of BR (even the day before discharge), so they potentially have ample time to set one up if you're still in the early stages (they can't start an IPA after 12 months).

You mentioned that the OR said you had no surplus? If that's the case, then they won't be setting up a full 3 year IPA until you do. If you've given them all the correct figures and keep them updated of any changes as you're supposed to, then it's their call.

Wayforward

BR since Aug so very early days i guess , and aware of the 12 month part. Just had NT applied now so just awaiting instructions on paying my tax to them.

I am just confused as to why they say I have no surplus , when I cleary have based on last 12 month. However no real way of knowing what ill earn month on month , I know for the next two months I wont have any surplus as wages will be quite low (will just be my basic wage, no bonus). Ill just have to sit tight I suppose and leave it in their court.

Wayforward

Also , the form I have signed would this jave just been to sign in agreement to the NT surplus being paid to the colelction agent ? or have a signed a full IPA ? the amoun the form advised my estamated payment would be was the exact amount i put on what tax i normally pay on my BR forms. I havent had anything agreed for my SOA yet , so surely this form cant be for an IPA over 36 month ?