NT tax code

betterdaysahead

Hi,
I was made BR back in June. Tax has been taken as normal in the form of PAYE since then. This week I have received a letter from the HMRC saying that they have now changed my tax code to NT until April when they have given me what my tax code will be. I know that I will now not have tax deducted from my salary but that this money will be reclaimed from me. However, I have a couple of queries regarding this:

1. Do I need to inform the OR that the NT code has been applied or do I just wait until I am contacted to pay it back?

2. Who is it paid to? The OR? I have heard people say Moonbeever but is that the same here in Northern Ireland?

3. Is it paid in the form of an IPA? I currently have been deemed not to have a surplus income so have no IPA in place. Is it likely that an IPA will be set up to collect this tax at this stage since it will stop in April anyway?

4. If an IPA is set up and stops at the end of the tax year in April, and if I am discharged in June, and say I then have an increase in my salary, would I have to pay into an IPA again then? Or because the original NT IPA has been satisfied and no surplus income IPA set up before discharge, would this not be the case?

Sorry for all the questions - any responses would be greatly appreciated!

Thanks,
BDA

alastairq

Do I need to inform the OR that the NT code has been applied or do I just wait until I am contacted to pay it back?

No, inform the OR...since your pay has literally become 'gross' pay, that is a change of circumstance, so the OR must be informed within 21 days of the event. They will then put you in touch with whoever they have to collect monies. [Used to be Moonbeever, not sure who it is in NI?}

The NT surplus is paid as part of an IPA

There are two types of IPA....[1] is the NT IPA, which is payable [the amount normally paid in tax] until either the beginning of the new tax year {April}...or until one changes job , if that comes first.

[2] A surplus-based IPA, which is payable for 3 years from inception, and is used to pay surplus income,as identified from within the SOA.

2 separate things....confusing.

betterdaysahead

Thanks Alastairq - I will inform the OR. I wonder if they collect the money themselves? When I got a bonus earlier this year I paid it directly to them so it may be the same for this. If they set up an NT IPA it will realistically only be set up for my end of March pay so I wonder if it will be worth their while. I'm hopeful that they may just ask me to collect the extra from the tax for end of February and March's pay and give it to them.

Definitely is confusing with the two different types of IPAs. So if I have no surplus apart from the extra money that otherwise would have gone to the HMRC, and this doesn't change, I should expect no IPA?

Again, thanks for helping Alastair - you've been a great help with a few different questions I've had over the last few months.

BDA