Couple of questions

zaphodbeeblebrox

My husband filed bankruptcy in April and just got his notice it has been discharged (yay!)
We didn't get any information about this though, so will his tax code immediately go back to what it should be? His tax code went to the emergency tax code and we've been paying a solicitor appointed by the OR the "excess" tax, however now he's been discharged should we continue paying this or will it take a while for the tax code to go back?

Also, we need to call and ask the OR this but maybe someone can shed some light... when the OR dealt with our finances after the bankruptcy order, they decided we should pay £70 per month for 3 years as some sort of agreement. I'm not sure what this is called. Anyway, we have no idea what this is dependant on. We have plans to move back to the US next year where my husband is from, as we simply can't afford to live here any more. Will we have to continue paying the £70 even though he will no longer have a job in the UK?

wherediditallgo

You'll probably need to speak to the OR - I've not had a NT code, so I'm not sure on the finer details of how they work. The £70 monthly payment is an IPA, & it's dependent on how much surplus income your husband has. It runs for 36 months, & while it's running he's required to tell the OR of any change in his circumstances within 21 days. If his income drops or other circumstances change, it's possible to have the IPA suspended. Even if he has no income in the UK, if he earns enough overseas it may still be possible for the OR to insist on the payments continuing. Please let us know what the OR says on this - I'm thinking of going overseas for a while at some point in the future, so I'd certainly appreciate some info on this.

JCS1

The Nil Tax Code will continue for the current tax year (assuming no change of employment) so to the 5th April 2008 which means March 2008 for monthly paid people. After this time, tax should revert back to normal and paid over to HMRC.