Council Tax/extra income tax question 15 May 2020 at 7:30PM in Bankruptcy & living with it 3 replies 91 views

Holly_Jones4

Hi All 
I hope everyone is keeping well. 

I am on day 10 of being declared bankrupt and am still absorbing it all and getting my head around it, just got to return the last few forms then I think I'm done. 
It was confirmed by my OR this afternoon that I don't have to have an IPA which was a MASSIVE relief!!! I was also told during my initial interview that I won't need to pay council tax until the end of this tax year - is this definitely correct? And what do I do with the extra income, do I need to put it aside ready to be collected next end March? Also I know I will be put on zero tax code so again, what happens to that little bit of extra cash I'll receive if I'm not paying tax for this year? It's not much but again, should I be putting this aside until it's claimed??

Thanks in advance
Holly

mwarby

It’s quite common to get a year long IPA just for collecting council tax and tax you would have paid if not on zero tax code. 

That IPA isn’t the same as the 3 year one you get if you have a surplus on your SOA

Holly_Jones4

But what do I do with that extra cash? That's what I'm not sure about. Do I have to save it?

mwarby

I would avoid spending it if you can afford to do so, but until your told it will be reclaimed I wouldn’t worry too much