What IPA will i have to pay?

that_sickly_stomach_pain

Hi all...

I've been reading a few posts about IPA's and how BR's need to pay them for 3 years from declaring BR.
I thought the point of becoming BR was to clear debts and have a fresh start? Isnt this similar to an IVA?! it seems strange to me to have to keep paying creditors once you're BR?

also....does your tax code get removed once you're BR? i was told that it gets removed for the rest of the current financial year and then you get a new one for the next FY? does this mean that your employers are informed?!
if i was to go BR then it would free up around £800 per month for me:j which is great and i could start a totally fresh life...go travelling or go back to college or something...i was told though to expect to pay anything between 50% and 70% of the disposable income left - around £800PM!

i'm confused...

betterlatethannever

This is a table of IPA percentages that you can expect to pay on any surplus income:
1st Column=SURPLUS INCOME
2nd Column=AMOUNT TO BE PAID
3rd Column=% OF DISPOSABLE INCOME

50 Nil
60 Nil
70 Nil
80 Nil
90 Nil
100 50 50
110 55 50
120 60 50
130 65 50
140 70 50
150 75 50
160 80 50
170 85 50
180 90 50
190 95 50
200 100 50
210 105 50
220 110 50
230 115 50
240 120 50
250 150 60
260 156 60
270 162 60
280 168 60
290 174 60
300 180 60
310 186 60
320 192 60
330 198 60
340 204 60
350 231 66
360 238 66
370 244 66
380 251 66
390 257 66
400 264 66
410 271 66
420 277 66
430 284 66
440 290 66
450 297 66
460 304 66
470 310 66
480 317 66
490 323 66
500 350 70
510 357 70
520 364 70
530 371 70
540 378 70
550 385 70
560 392 70
570 399 70
580 406 70
590 413 70
600 420 70

The above list doesn't go upto £800 but i'd guess you would pay 70% of that £800.
Are you sure you'd have that much spare? have you done an SOA and checked it through for everything?
Thats a large amount spare, have you taken advice from CCCS/CAB etc? is BR your only option?
Your Tax code changes to NT (nil tax) after BR, and theres no need for your employer to find out as there are several reasons for a NT code-although i don't know what they are. Only the pay dept would be aware of the change.

dalip

Just thought you might be interested. As i had recently gone from p/t to f/t employment my OR said he was not taking any tax from me as i was not paying enough for it to be viable:T .So thank god my employer will not find out.Phew......Dalip

NekoZombie

Your employer wouldn't necessarily have found out anyway dalip - there are more reasons than bankruptcy to be put on a nil-tax code.

Sickly, there's no way you spare income is £800. If you are willing to post your SOA we can can have a look and help you re-work it to minimise your IPA. That said, I know of at least one person on here whose IPA is £300 approx per month.

dalip

Neko
You don't know my boss, he is so nosy and it is a very small company that i work for!. Trust me he would have found out.lol dal

NekoZombie

dalip wrote: »

Neko
You don't know my boss, he is so nosy and it is a very small company that i work for!. Trust me he would have found out.lol dal

Fair enough! As you say, some people can't help but stick their nose where it doesn't belong.

Oldernotwiser

that_sickly_stomach_pain wrote: »

Hi all...



also....does your tax code get removed once you're BR? i was told that it gets removed for the rest of the current financial year and then you get a new one for the next FY? does this mean that your employers are informed?!
if i was to go BR then it would free up around £800 per month for me:j which is great and i could start a totally fresh life...go travelling or go back to college or something...i was told though to expect to pay anything between 50% and 70% of the disposable income left - around £800PM!

:

Even if your disposable income were £800 (which seems unlikely) at present, it ceretinly wouldn't be if you went back to college or went travelling! I rthink that you've got in a bit of a muddle about this.