tax code change to NT

bankrupt_no_24601

Hi there fellows !!

So ... the tax office have written to my employer and changed my tax code so I no longer pay tax. So ... I'm now earning a fair deal more than I did. So what happens next ?

I went BR in February and am confused about the different stages. I have had the meeting with the insolvency department and to be honest my case is pretty simple (pretty much zero assets apart from the money I am being paid).

When do they take money out? Do they look at the account balance first ? What is the timeline for all of this happening ? Feel free just to post links to these answers if they have already been discussed.

Thanks,

BR 24601.

TheGardener

Hi - Usually, the OR gets a 3rd party agent to collect the money from you. I would contact the OR and ask about this - it may be that your reasonable expenses were not covered by your wage? in which case, you may get to keep some of it - but check with the OR first before you spend it.

bankrupt_no_24601

Thanks. Believe me I am not spending anything beyond absolutely essential day to day living expenses right now (ie the usual rent, food, travel to work, few bills etc). Everything that I spend I can currently justify, and in fact I am trying to minimise the amount of cash out of the account and just using the debit card at tescos, the train station etc etc.

It's just weird that after going BR ... I now have more money than I did before (not paying the credit cards anymore and with the money not being paid as tax either) .. Very strange.

alastairq

Your tax for the BR year is included in the BR..or would be if you paid tax once a year....so for parity for PAYE folk, the NT code is emplaced.
Which effectively means you receive gross pay, less NI, etc.

You need to put aside the amount you would have paid in tax, each payday.

One of two collection agents [Moonbeever is one I know about]will contact you regarding the amount you are expected to pay [equal, as near as they can get, to the amount of tax you would have paid].

If the payment due date is difficult for you, contact the collectors who ought to re-schedule the date to suit, although officially you would have 21 days to pay .[needs confirmation, rules may have changed?}

If you disagree with the amount specified [ie, it might be too much if you have suffered a pay cut?] then send your wageslips to the collector so a revised figure can be drawn up.