Council tax and tax query

lm75

Evening all!
Just a quick query, when i spoke to a lady at the insolvency service who went through my expenditure with me (was a different person to my OR) she said that my council tax payments would be stopped for 3 months and also i wouldn't pay any tax, i'm sure she said i didn't need to forward the payments on to them, that i just needed to pay the ipa amount that we agreed. Does this sound right, i'm worried i misunderstood!

Thanks

fatbelly

lm75 wrote: »

Evening all!
Just a quick query, when i spoke to a lady at the insolvency service who went through my expenditure with me (was a different person to my OR) she said that my council tax payments would be stopped for 3 months and also i wouldn't pay any tax, i'm sure she said i didn't need to forward the payments on to them, that i just needed to pay the ipa amount that we agreed. Does this sound right, i'm worried i misunderstood!

Thanks

That sounds right to me. You'll start paying council tax again in April

lm75

So i don't need to give them the money? must admit it will be usefull with christmas approaching, might mean i can by some gifts!

luvchocolate

You will be put on a nil tax code, so the tax you would normally pay will be in your pay packet......save this on one side as the O.R representative will contact you to make payment.
I actually set up a direct debit for the tax direct to my O.R but my B.R was a bit different.
7 years later I am still in contact socially with my O.R!!!!

lm75

so they will want the money despite the agreed ipa, that's fine as long as i know where i am. The lady i spoke to was really helpfull, she went through my soa and increased amounts in some of it, i was probably scrimping a bit cause i didn't want to put too much down as expenditure but she got it to a more realistic figure, had i have been wiser i would've put more on food shopping etc.

Minkym00

When your surplus for an IPA is calculated they will take into consideration the nil tax and council tax and include this income in the calculation. If there is a surplus from your normal income they’ll claim the tax and CT. However if you need some of it for your essential household expenditure you would be allowed to keep it, or a portion of it.

It’ll be clear in your IPA when you get it.