Quickie: Re tax after BR

Leicestercat

Hi

I went bankrupt on 12 February and work weekly - so far I havent been paid without being taxed - does it usually take this long, or should it be automatic?

LC x

fermi

It can take forever for HMRC to get their act together and apply the NT code. :rolleyes:

Until the do, it's not your problem.

Plus there is only just over a week of this tax year left, which is when the code would revert to normal anyway.

So it looks like they either won't be able to do it in time, or even if they do manage it for the last week then for such a short period the OR can't sometimes be bothered to collect it.

Leicestercat

Ok thanks...

... so they dont back date it then?

tigerfeet2006

Hi LC, good to 'see' you around.

Nope! no back dating . So if you don't get anything next week you will not have a nil tax code

cmd:0

can I tax, what is the NT Code, does it affect the self employed?
I work from home, have not yet filed my 1st year tax return. will this affect me?

Thanks

C
X

cmd:0

I meant ASK? Sorry

tigerfeet2006

What it means is when you go BR the tax man will give you a nil tax code and any tax due to them is given to the OR or trustee. You do this for the tax year you go BR in or untill you change jobs.

cmd:0

so, if I go BR in the next tax year, and im due a rebate from this year, will that go to the tax man - does this apply to tax credits too? I think im due a payment from them as have not earned as much as I though I would have

ta

Leicestercat

Hi Tigerfeet!

nice to 'see' you too. So unless I get onto my OR asap, I take it ill lose all that extra money.... Well, will leave it I think as really doubt it can/will be done in time.

Cmd: sorry I dont understand what you mean...

LC

fermi

cmd:0 wrote: »

so, if I go BR in the next tax year, and im due a rebate from this year, will that go to the tax man

That will go to the OR.

One of the first forms that you are required to sign when you go BR is the TNIDIS (Tax & National Insurance DISclosure).

Which goes something like this............

To:

The Commissioners of Inland Revenue and Department of Work and Pensions.

I authorise and request you to provide to the Official Receiver (and to any agent appointed by the Official Receiver or any trustee who may be appointed in my bankruptcy) for all the tax years up to and including that in which I am discharged from bankruptcy:

1. copies of my tax returns and any accounts submitted to you;

2. details of;

a) my tax assessments;
b) my national insurance contributions and tax credits;
c) any benefits I have claimed; and

3 any other information about my tax or national insurance affairs, tax credits or benefits which the Official Receiver (or trustee) may require.

I also authorise and request you to pay to the Official Receiver (or any trustee who may be appointed in my bankruptcy) any income tax refunds due to me for all tax years up to and including that in which the bankruptcy order was made against me.

Date


Signed

fermi

Just had to go and look up tax credits, which are apparent covered by this:

31.7.10 Arrears of benefits received post bankruptcy

Occasionally, where a bankrupt is in receipt of benefits he/she may receive arrears of benefit payments as a post bankruptcy receipt (prior to discharge). Where this happens, because state benefits are excluded from the bankruptcy, the arrears of benefit (including tax credits ) cannot be claimed as a vested asset because they are state benefits. It may however be possible to claim the monies under the income payments provisions of the Insolvency Act by agreeing a single payment agreement with the bankrupt as a voluntary contribution. Any arrears of benefit claimed in this way should not include any child tax credit benefits.

N.B. official receivers must ensure when dealing with arrears of benefit in this way as a voluntary contribution, that the payment does not represent an overpayment, which has been paid to the bankrupt post bankruptcy and which can be recovered after discharge in specific circumstances.