NT tax code

allthe7s

Hi all 
Some months I dont pay any tax and other months I pay about £40 (depending if it's a 4 or 5 week month) so if they put me on an NT tax code when I go BR next month will there be a way of me knowing how much tax I would have paid that month? Ie is it marked on my pay slip or something? 

Thanks

mwarby

It won't be marked on your payslip(at least it wasn't when I last had that code in early 2000s). You could use one of the the calculators like https://www.uktaxcalculators.co.uk/tax-calculators/personal-tax-calculators/payslip-calculator/ to calculate the tax you would have paid, I'm sure the OR has similar tools

mwarby

I'd imagine though each month they'd simply take your income, minus agreed expenses and have you pay over what's left.

mwarby

Actually you'll only be on that code for a month or so, the NT tax code is AFAIK only for the tax year you started the bankruptcy, I'm not sure if the tax code change will trigger a big refund through your payroll, it might

allthe7s

I'm not applying til after April 6th so it will be next year that's affected. Although I'm starting to feel really guilty about my council tax not being paid for  a full year which Is making me want to do it in this tax year. 

mwarby

I personally struggle to see the benefit of timing bankruptcy around the tax year. Anything that's saved by not paying tax or council tax just goes into the ORs coffers (which is the goverment), yeah your creditors might see a few extra pence, but for many the creditors will see close to nothing anyway(there are a lot of fees in bankruptcy, over and above what the debtor pays).

Minkym00

THe OR will look at your last few payslips and work out an average on the tax you would have paid, and claim that. This is a bit of a pain for you as some months you wouldn’t have paid any at all, so you would be worse off in paying a set amount of tax over every month. They have the flexibility not to claim your tax if it would adversely affect you and, given you’re obviously on a low/part-time income, then you should argue any IPA that is suggested.

Rachfarn

I still paid my council tax, was told to keep paying.