Nil tax code

Joemac2016

I am planning to go bankrupt at end of Jan 16. My biggest worry is the nil tax code being applied and my work putting 2 and 2 together. It's not in my contract so won't be sacked but I would still not want anyone in work to find out if I can avoid it.

My question is this- is end Jan 16 late enough in the tax year for the OR not to bother getting Hrmc to change it or should I leave it for another month?

If I change my bank details and then a nil tax code is applied surely my company will have an idea of what's going on

Any advice would be greatly appreciated

abcdave

Hi there,

I went BR in March this year, it took the tax office 6 months to get in touch. I guess they just don't move too fast

Good luck

Joemac2016

Why did they get in contact? Surely as you went bankrupt in March, they wouldn't have bothered with the nil tax code as it wouldn't have been worth the hassle

Cobalt77

Joemac2016.

HMRC will ALWAYS adjust it - even for just 1 day. That's the way the system works, and the PAYE tax doesn't belong to you or HMRC - it belongs to your creditors via the OR.

Banquo21

The NIL Tax Code could be a for a number of things not just bankruptcy. From my experience of working in a payroll department tax codes changed every month. You will just be another adjustment on a keyboard to them.

Joemac2016

Yeah but if they get a note to change my bank account to Barclays and then get a note to change to nil tax code, surely they would be getting suspicious, or am I just being paranoid about it all? There's nothing in my contract about bankruptcy so should be fine (don't deal with money) but I am very private and would hate other people knowing my business at work and judging me when they have no idea about my situation and why I have to do this

Cobalt77

Well, Joemac2016 payroll issues are nothing.

As soon as someone Google's your name, your Gazette BR entry will usually appear FIRST in the list of search results! This also happens if someone searches for an address close to yours.

This means that anyone - not just a few people at your firm - will see you've gone bust - family, friends, neighbours, future partners. future employers will know.

It's just one of those things, so it's pointless worrying about it.

Strachan

I'm in education and bankrupt. I told my head teacher about it myself as I knew I would feel pressured during the next year and I wanted the school to know that there is a reason for any stress I may show. There was also no bankruptcy clause in my contract. The school has been very supportive. Don't keep on judging yourself.

Cobalt77

Joemac2016,

Also, you may not need to change your bank account details either.

In my case a few months ago, Natwest just issued me with a new debit card - I kept exactly the same account (i.e. same account number & online banking).

This was back when Barclays & Co-op were the only choices - I got lucky with Natwest, who usually decline everyone. From tomorrow, there are at least 10 more high street banks & building societies who are offering basic current accounts (which look exactly the same as "normal" current accounts)

So, there is a possibility you'll end up keeping the same bank account you currently have

Joemac2016

My bank account will be shut down. Fact! What about the high street banks as of 1st Jan 2016. Are there any additional banks likely to accept undischarged bankrupts other than Barclays?

Cobalt77

Here you go:

The banks and building societies that have signed up to offer a basic bank account from 1 January 2016 and their corresponding bank account product are:

• Barclays – Barclays Basic Current Account
• Santander – Basic Current Account
• NatWest – Foundation Account
• Ulster Bank (Northern Ireland) – Foundation Account
• The Royal Bank of Scotland (Scotland) – Foundation Account
• RBS England & Wales – Basic Account
• HSBC – Basic Bank Account
• Nationwide – FlexBasic
• Co-operative Bank – Cashminder
• Lloyds Banking Group (including Halifax and Bank of Scotland brands) – Basic Account
• TSB – Cash Account
• National Australia Bank Group (including Yorkshire Bank and Clydesdale brands) – Readycash Account