NT tax code...

Piggywinkle

Hi all,

I became bankrupt at the end of September. I recently received a letter from HMRC saying that my tax code had changed to NT. I understand that this tends to happen if you're a tax payer who may be liable to pay into an IPA, but a) I only work 15 hours per week and don't pay tax anyway and b) as far as I'm aware, I'm not being asked to contribute to an IPA.

I'm a bit confused now as we applied for backdated marriage allowance ages ago and although mine and my husband's tax codes changed, we never received any backdated monies, no matter how much we chased. I've all but given up! Will my NT tax code now have an effect on my husband's code?

National_Debtline

Hi Piggywinkle


I believe the transition to a NT code is pretty much standard procedure, regardless of whether you are earning enough to become liable for tax at the time of your bankruptcy.


I confess I'm not entirely sure what if any significance this could have for your husband's tax code and/or your entitlement to any backdated married couple allowance.


Dennis
@natdebtline

Dazed_and_confused

Have you checked hubbies pay slips from when the change was made to include your (marriage) allowance? Any refund/adjustment would have automatically been applied by his employer when this happened.Unless you applied close to the end of the 2015:16 tax year when it could be different.

More details needed for a better response really

Piggywinkle

Dazed_and_confused wrote: »

Have you checked hubbies pay slips from when the change was made to include your (marriage) allowance? Any refund/adjustment would have automatically been applied by his employer when this happened.Unless you applied close to the end of the 2015:16 tax year when it could be different.

More details needed for a better response really

We did apply at the end of the tax year - it was the first week in March. Our codes were both changed within weeks to reflect the marriage tax allowance (no backdated amount though). HMRC told us we would be issued with a cheque several times for the tax year in which we applied, but it has never materialised and I'm now a bit sick of waiting on the phone for 40 minutes to be told the same thing over and over.

Obviously, when the married tax thing becomes applicable, there are letters that appear on the end of the code to identify the recipient of the extra tax allowance and the transferrer (not sure that's an actual word ). Now my 'transferrer' status (if you like) has been changed to NT, I wonder if my husband's code is reliant on this and therefore we won't get any further tax allowance.

Dazed_and_confused

When was the new tax code issued for 2015:16? Was it too late for hubbies employer to use it before the tax year ended?

If so why don't you simply send in hubbies P60 and ask the HMRC to check his tax for last year, if he paid tax and didn't get the benefit of your marraige allowance transfer then there would normally be a tax repayment due.

Can't imagine what happened to you this tax year would affect hubbies tax for last year

Piggywinkle

Thanks Dazed - you're right, we did submit our application in the first week of March, which was too late in the tax year. HMRC have told us on at least 5 separate occasions that we are due a backdated payment. We have been promised a cheque and been given loads of different excuses as to why we've never received any cheque. We been having one problem after another with them for a few years now. The process is driving me mad. I've lost count of the times we called up, waited for 45 minutes to speak to someone, been promised the earth and then... nothing.


I've written a letter and sent recorded delivery on this occasion to see if that gets me anywhere. Sorry for the rant!