We're aware that some users are experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Bankruptcy/IPA/NT tax

Options
Hey guys, 
Been looking over this forum for a long time and have a question I couldn't find the answer too, 
I've been made bankrupt in July this year, issued with a NT tax code in October and currently not paying tax on my wages. My income expenditure form was submitted and I am still paying over what I earn to live basically even with the NT tax code. I had an email from the OR saying I will not have to pay an IPA currently. I do not own a house I'm currently renting in a full time job. Once this tax year is over I assume I'll be put onto a standard tax code again where I will be in a shortfall and will rely on parents to help me with that. My question is will the OR write to me saying I owe them the money from tax or has it been agreed that I'm allowed to use that to live currently? My situation is not changing anytime soon. 

Thanks guys 

Comments

  • Hi you would normally be given details as to who to pay the tax to, I set up a standing order to pay my tax to my trustee.
    some people have been allowed to keep the tax if on a very low income but this should be made clear from your OR
  • Hi chocolate, 
    Thanks for the reply. My income is not very low but due to where I work and live (London area) it is a bit more expensive than up north. My income currently is around £2400 on the NT tax code and currently spending £2450 to live. The OR knows this and has accepted saying an IPA wkll not be needed currently. I was just wondering if after the new tax year I will be hit with a heavy council tax bill and PAYE tax bill for £4000 for example?

    Thanks
  • Minkym00
    Minkym00 Posts: 791 Forumite
    Sixth Anniversary 500 Posts Name Dropper
    You are not expected to pay back the benefit you have had of nil tax or council tax, don’t worry. 
  • Minkym00 said:
    You are not expected to pay back the benefit you have had of nil tax or council tax, don’t worry. 
    Hi minky thanks for the reply, 

    Is there anywhere online which states this just so I can make sure? Getting very worried the more I look into it! 
  • Sky132 said:
    Minkym00 said:
    You are not expected to pay back the benefit you have had of nil tax or council tax, don’t worry. 
    Hi minky thanks for the reply, 

    Is there anywhere online which states this just so I can make sure? Getting very worried the more I look into it! 
    You can trust Minkys reply..they know their stuff 
  • Minkym00
    Minkym00 Posts: 791 Forumite
    Sixth Anniversary 500 Posts Name Dropper
    Thanks luvchocolate. 

    OP, you could write to your OR. They will confirm this. 
  • I'm curious how by even going BKT, how are you still struggling to live within your means?
    Surely you need to review all of the expenditure outlay, otherwise you'll be in the same problem in a couple of years? or have i misunderstood something here
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.7K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.7K Work, Benefits & Business
  • 598.4K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.