My tax ipa query

Startingagain25

Hello all,

I recently became bankrupt 1/7/22 and have a tax ipa for £137, paying to Advantis. 

Hmrc haven’t changed my tax code so they asked me to send payslips and my salary had actually decreased by £200 so they said they would speak to the insolvency team and defer payments by a month. 

My questions are:

1) is it likely that the amount will decrease due to decreased salary and increasing outgoings (e.g new job is 27miles further away so petrol costs are more and my electricity will be more in October also- but they weren’t interested in hearing about that at all)

2) at the end of the tax year, will Advantis require my payslips again at that time to see if ipa should be set up for 3 years or do they accept the original soa (obviously taking into account changed salary)

thank you for your help!

JCS1

When did you change jobs in relation go the date of your bankruptcy?

And if it is a nil tax IPA only, then the cost of living increase would not apply, as it would be tax you would normally pay over to HMRC.

Minkym00

If you move jobs after bankruptcy the nil tax code expires and you pay tax again. But if the salary of your new job is lower then you need to request a new assessment of your income and outgoings from the Insolvency Service. 

Startingagain25

Thank you for the replies. Made bankrupt 1/7/22. New job started 6/8/22. 

Still have normal tax code and paying tax but salary has dropped by £200. Advantis call regularly and initially asked for my payslip and are now asking for proof of increased expenses

(this is because my bill tax ipa took into account excess outgoings (so was tax was £245 but asked to pay £137 due to outgoings being more than my incoming). 

Advantis seem a lot less sympathetic than the ipa team I initially spoke to and just want their money despite the fact that a) I’m still paying tax to HMRC and b) I don’t have anything left at the end of the month! It’s causing me a lot of stress