We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Who does the tax go to?

Can someone shed some light on the NT tax please. Went bankrupt in December 2019. Was on the NT tax code until April 2020. Never heard anything about it again but kept the tax aside as I knew I would get a bill. Paying an IPA. Have now had a bill from the tax office  HMRC for the tax but I thought it was the official receiver I paid it to? Who am I meant to be paying please ? 

Comments

  • emmajones1976
    emmajones1976 Posts: 1,345 Forumite
    1,000 Posts Name Dropper
    edited 25 November 2021 am30 9:27AM
    The excess tax should have been paid to whoever was administering your IPA, used to be a company called Clarke Wilmott, this may have changed though (obviously you will know who this is)

    HMRC clearly think you have dodged the tax, you need to write to them (or ring them) saying you were legitimately on a NT tax code due to bankruptcy and they will sort it, they may even chuck you £30 as a "sorry".

    Surprised you have got to November 2021 and had nobody else ask you for the 3/4 months of tax though.
  • I was with Clarke Wilmot but they then sent me to advantise I have no idea who I'm meant to be talking to so I have just let the money go each month and waited. 
  • emmajones1976
    emmajones1976 Posts: 1,345 Forumite
    1,000 Posts Name Dropper
    edited 25 November 2021 am30 9:33AM

    6.2 Suspended income tax payments

    HMRC will apply a ‘nil tax code’ (NT) when you’re bankrupt. This tells your employer not to take any further income tax from your wages for the rest of the tax year (ending on 5 April). The extra money in your pay that results from this can be claimed by the trustee to form part or all of an IPA or IPO. If the IPA or IPO is wholly paid out of this extra income, it will stop when you start paying tax again.

    https://www.gov.uk/government/publications/guide-to-bankruptcy/guide-to-bankruptcy


    Clarke Wilmott are talking utter garbage, I paid my 3 NT tax payments to them and this was years ago, the procedure doesnt look to have changed. If they are the people you pay your monthly payments to then they are also the people to pay the NT tax money to.


    Is the HMRC demand correct to the penny?

  • No it's less than I expecteed
  • emmajones1976
    emmajones1976 Posts: 1,345 Forumite
    1,000 Posts Name Dropper
    edited 25 November 2021 am30 9:41AM
    https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/technicalmanual/Ch73-84/Chapter77/part2/Part2.htm

    Section 77.23 outlines the process, it does seem to suggest that now HMRC would pay it directly to the trustees. This has changed since my day. So it could be HMRC have done their bit and are now are asking for the money. 

    Think it needs someone who had a more recent bankruptcy than I did (2012) to confirm what they did though
  • You need to query this with HMRC. If they applied an NT tax code then they should be aware that no funds are due to them for the period from your bankruptcy order until the following April.
  • I was declared bankrupt in 2018 - got a lovely letter from HMRC telling me I owed them quite a lot of money for unpaid tax during that year. It needed to be paid within 3 months.

    When I called to query it, at first I was told to pay it and if it isn’t owed I’d be refunded (at that point I laughed hysterically and hung up and called to speak to someone else)

    this second person was much better. Said they would look in to it. In the meantime he would put a note on my account so I wouldn’t be chased. 

    8 months later I got a letter telling me not to worry, I don’t owe the money. 

    It still angers me that before checking my account, they wrote a letter saying I owed that much money to be paid in a short amount of time. Why didn’t they check first? Argh. My one of MANY gripes with our wonderful HMRC.
  • Rachfarn, OR contacted me October to confirm Advantis would be the collection agency, but that although I had signed the 'agreement' in August authorising the OR agent's to collect the monies from (my account).... as it was October and they had yet to contact me, the collections agency could not back-date the NT to August, which was the date I had signed and returned my agreement.  Advantis contacted me in November and tried to back-date the collection, which I told them was incorrect. I contacted the OR, who confirmed that they had personally notified Advantis they were not back-date their collections demand and that now a line manager would be contacting them that day to make it clear to them they were not allowed to back-date the NT collection.  This might possibly explain why it is a little less than you might have anticipated.

    If you were to contact the OR, they would I am sure provide you with the Advantis telephone number - you will need your reference number to help the collections agency identify you. Thereafter, you should be able to make the payment direct to Advantis and be done with it.

    Good luck
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
  • 348.4K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 241K Work, Benefits & Business
  • 617.3K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support 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.