Nil Tax Code

robkaz69

Hi can anyone offer any background to the following

Went BR 18th May 2007 (best thing i could have done) and very happy, received letter from tax office stating Nil tax code for the remaining of this tax year.

Question.

Do i have to pay all this tax to the OR, or do i have to notify them? approx £250 a month

i do not want to spend this money if they come chasing say in a couple of months and i should have payed them as soon as i benefited from it

Any help or experiences from people on this wonderful site to help me understand this part of BR would be great

With Thanks

fermi

Your instinct is correct. Don't spend the money, and put it to one side.

Contact your OR to find out how/when to pay this to them.

owetoomuch

When I went BR I had to sign a form for a Nil Tax code, the OR appointed a trustee to collect this money on their behalf, I went BR on 25th May but tax office have not given the Nil Tax Code to my employer yet so each month I have to send a copy of my payslip to the trustee to show I am still paying tax. I will have to pay them my tax when I finally have the Nil Tax Code allocated to my salary.

Did you receive anything from your OR about a trustee for this?

robkaz69

Thanks for the response, this morning received letter from OR saying i have been passed to a trustee to over see BR, give keys to house back to Abbey only thing i can offer as payment will be tax so suppose cant complain if i have to pay money to April 2008

whitehartman

Hi,
I was on the Nil Tax code 2 months after my bankruptcy and my o/r received monthly cheques from myself for the tax i did not pay.
But you have to contact the tax office yourself to get your tax code back for the new financial year.
I was still on the Nil tax code 3 months after April and my o/r told me to contact them.
I was made bankrupt late last year.

Hope this helps.

Posthinking

whitehartman wrote: »

Hi,
I was on the Nil Tax code 2 months after my bankruptcy and my o/r received monthly cheques from myself for the tax i did not pay.
But you have to contact the tax office yourself to get your tax code back for the new financial year.
I was still on the Nil tax code 3 months after April and my o/r told me to contact them.
I was made bankrupt late last year.

Hope this helps.

That's very interesting but possibly an error on the part of HMRC Not heard of this before now

fermi

Posthinking wrote: »

That's very interesting but possibly an error on the part of HMRC Not heard of this before now

It seems there was a general b@lls up by HMRC at the start of this tax year if reports elsewhere are to believed, and this happened to a lot of people.

You should normally be reverted automatically back to a normal code at the start of the tax year following your BR.