What reasons are there for a nil tax code?

leeW_3

hi again, im getting given a nil tax so that i can pay towards an ipa. I understand what it is etc but what are the other reasons why the hmrc would give you one?
I know i dont have to say anything to my employer but the girl in the office is proper nosey and i know she will ask me why when it goes on, i dont want to tell them that i am bankrupt.

Thanks guys

mclachlan4321

As far as I know, there is only 1 reason, and that is for Bankruptcy, unless someone else on here knows any different.

I can see why you want a different excuse, but I dont know of one, sorry.

Waspeze

I think I remember a post a while back where someones payroll dept had queried it with HMRC, why the employee had nil tax code... the response was a big list of possible reasons and the comment "Because we felt like it" or something along those lines

I'm sure someone in the know will be along soon

Richard_S

Hi Lee,

How about saying that you were in a business partneship with your O.H, a friend or relative, and that the business had made some decent profits, and that the accountant who prepared your accounts and tax affairs didn't realise that you were also working, and as a result you overpaid tax for the last financial year.

You've spoken to the tax office concerned and they suggested an NT code as being the most appropriate way to reimburse you for the overpayment of tax. It's not the sort of story that would stand up in front of a taxation specialist, but it might work with a nosy payroll clerk.:D

Regards

Richard

maxmycardagain

or...

say HMRC found a major amount owed from 1989 and are having back that way, via a nil tax code

fermi

Waspeze wrote: »

I think I remember a post a while back where someones payroll dept had queried it with HMRC, why the employee had nil tax code... the response was a big list of possible reasons and the comment "Because we felt like it" or something along those lines

Yep. I noticed an examiner post this on another forum a while back. I hope it's true.

A bankrupts employer (being nosey) once requested a full breakdown into why his member of staff was on a nil tax code, and had a 27 page reply with every possible reason this could happen the guide book that explained it and a little note at the end that said

"cause we told you to, and will not tell you why"

HMRC is a bit of law on to themselves

maxmycardagain

actually, hmrc ARE the law, thats why every VAT officer carries a copy of the 1888 (i think) act of parliament, they can go anywhere anytime take anything they want

more businesses are closed by the vat man each year than by any other cause

scary

beverleyhills

leeW wrote: »

I know i dont have to say anything to my employer but the girl in the office is proper nosey and i know she will ask me why when it goes on, i dont want to tell them that i am bankrupt.

Thanks guys

Staff who have access to other employees personal details are expected to keep confidentiality.

Remind her of that if she asks.

stubie

maxmycardagain wrote: »

or...

say HMRC found a major amount owed from 1989 and are having back that way, via a nil tax code

I used this excuse for my payroll dept, told them I had a company from 1990-1996 and HMRC were chasing me for 25k of unpaid tax/vat, I had no option other than BR.

It worked for me.

diablobear

Hiya - I'm actually a Payroll Supervisor. As I have a NT tax code myself I chose to tell my Manager I went BR just in case anyone thought I was up to anything dodgy!! I was not judged in any way & they were very sympathatic to my situation.

However, I receive tax codes from HMRC for the employees everyday, our policy is, that it is not mine or the company's business why the HMRC have issued a certain tax code, we just process the data. It is my ethics & duty not to tell anyone what tax code is being used except the employee themselves & HMRC, that includes not telling the Company Chairman even if he asked!! Indeed there are loads of reasons why an NT tax code is issued so who am I or any payroll department to judge, again we are there to process the data provided by HMRC.

There is no need to lie, if asked, it is none of their business, if you want to be courteous in some way then say "If that is what HMRC say my tax code is, then who am I to argue"!

In short, it is nobody's business except your's and HMRC why you are on any tax code.

Good luck!

JCS1

diablobear wrote: »

Hiya - I'm actually a Payroll Supervisor. As I have a NT tax code myself I chose to tell my Manager I went BR just in case anyone thought I was up to anything dodgy!! I was not judged in any way & they were very sympathatic to my situation.

However, I receive tax codes from HMRC for the employees everyday, our policy is, that it is not mine or the company's business why the HMRC have issued a certain tax code, we just process the data. It is my ethics & duty not to tell anyone what tax code is being used except the employee themselves & HMRC, that includes not telling the Company Chairman even if he asked!! Indeed there are loads of reasons why an NT tax code is issued so who am I or any payroll department to judge, again we are there to process the data provided by HMRC.

There is no need to lie, if asked, it is none of their business, if you want to be courteous in some way then say "If that is what HMRC say my tax code is, then who am I to argue"!

In short, it is nobody's business except your's and HMRC why you are on any tax code.

Good luck!

I agree, I used to do payroll as well, and tax codes are just something you enter onto the system and file. They are never queried with HMRC, and your payroll should not ask you why.