Quickie: Re tax after BR

Toon_Dave

Thanks for that Fermi.

I will see how they decide to do it...thanks for the info.

Dave.

JCS1

Toon_Dave wrote: »

Can i just ask, if i go BR in april so at the beginning of the new financial year what happens re the taxcode?

Am i better or worse off waiting until the new financial year starts?

Cheers, Dave.

You're not any worse or better off. If go bankrupt after the 6th April (and assuming you don't change employment) you will be issued with a nil tax code, so say you pay £200 p/m in tax, you will receive £200 p/m more in your take home pay. This money is then paid over to the OR via Clarke Wilmott.

You will have to sign a IPA form, which can be for a nil tax code only, IPA only, or both.

Think most people set up as direct debit or standing order to Clarke Wilmott for a day or so after pay day, so the money goes in and out.

It really is receiving in one hand and giving to the OR in the other.

But if you go bankrupt on or before 5th April, there won;t be time to set up a NT tax code, so above wouldn't happen.

Toon_Dave

Thanks JCS1, i unfortunately i wont be BR until after then so i guess it'll be set up...never mind.

Do i pay the IPA as well as the Tax?? Or will it just depend on what surplus i have left over?

JCS1

Toon_Dave wrote: »

Thanks JCS1, i unfortunately i wont be BR until after then so i guess it'll be set up...never mind.

Do i pay the IPA as well as the Tax?? Or will it just depend on what surplus i have left over?

Depends on your surplus, not sure if you've got round to doing your income and outgoings yet, put post them on here when you do and you'll get advice

Toon_Dave

Thanks JCS1, i am still working on the SOA, as i will hopefully in rented and not the mortgage when i go BR, but i think im going to have around £400 surplus, ish...depending on my essential outgoings and the exact costs of utilities etc..

As soon as i know where i'll be i will post a new thread.

Thanks Again for advice.

Dave.

Leicestercat

Hi Dave

Yes I was told that the best time to go bankrupt would be April, as then you dont get taxed for a whole year!! Dont really think it matters though thinking about it as the OR will take the surplus away. May make you feel better that something is being paid back though...?

LC