NT code IPA and redundancy money query
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Almond18
Posts: 1 Newbie
Hi,
I have a situation on my hands and though I have looked all over I didn't quite find the answers to my questions.
First I'll write about my situation and then I have a few questions, so pls bear with me.
I am 2 weeks away from AD, so I'm nearly there, but last week I just have been informed about a 3 year IPA that confuses me. Let me start from the beginning.
I have declared BR in May last year.
No surplus income IPA have been set up as didn't have any surplus income.
In July a NT code IPA has been set up to collect the taxes, saying that it will end on 5 Apr.
In July my tax code has been changed to NT.
At the end of July I have been made redundant and received redundancy money.
In Aug I have paid the NT taxes up until July.
OR requested the redundancy money and I have signed that I am aware that I have received the letter and their request.
I have told them at that time that I cannot pay the full amount requested due to the fact that I have used a part of them for daily living expenses - rent, bills, food and I will need the rest as well until I will find another job for daily living.
Mid September I have started another job, on a lower salary than my previous one and my tax code went back to normal.
End of Feb (didn't hear from them until Feb), OR asked me to fill in the budget / expenses form again and they have said that they want the redundancy money and that we can set up a plan to repay them.
I have sent them the new budget and documents and have told them that unfortunately I don't have the redundancy money anymore as I have used them to cover the monthly pay decrease over the past 6 months.
Last week they've told me by email that my 3 years IPA, has been suspended for the time being because no surplus income.
I am not aware of a 3 years IPA, the paper that I've signed it says until 5 Apr and it was to collect the taxes.
Now my questions:
- does every employee who declares BR once he's put on a NT code will have a NT code based IPA? For how long - until the end of financial year- or is it for 3 years?
- if you are on NT code based IPA, initially, where it says that is until the end of the financial year, this can be extended to cover 3 years? do they have to inform you and ask you to sign?
- do you have to see & sign the new IPA (3 years one) ?
- can an IPA be set up to collect the redundancy money? do they have to advise you about it?
- can they use the NT code IPA to collect the redundancy money and extended to last 3 years? do you need to see the agreement and sign it?
- why they've left it so late to inform me that I'm in a 3 years IPA? I thought that I'll finish with the NT based one on the 5 Apr
- how they will collect the redundancy money and when? how long I will be in this situation - how many years from now on, I will have to pay back?
- can a new IPA be set up now 2 weeks before AD?
Sorry for all these questions but I didn't find a clear answer to them.
Are all employees when their tax code changes to NT, put on a plan, NT code based IPA, to pay the taxes to the OR, as in most of the cases those taxes will be more than £20 and then they will be considered a surplus? Is this correct? And as they didn't have initially an IPA when this NT code will be set up - will it finish at the end of the financial year or it will last longer than that?
Thank you and I'll appreciate any thoughts
I have a situation on my hands and though I have looked all over I didn't quite find the answers to my questions.
First I'll write about my situation and then I have a few questions, so pls bear with me.
I am 2 weeks away from AD, so I'm nearly there, but last week I just have been informed about a 3 year IPA that confuses me. Let me start from the beginning.
I have declared BR in May last year.
No surplus income IPA have been set up as didn't have any surplus income.
In July a NT code IPA has been set up to collect the taxes, saying that it will end on 5 Apr.
In July my tax code has been changed to NT.
At the end of July I have been made redundant and received redundancy money.
In Aug I have paid the NT taxes up until July.
OR requested the redundancy money and I have signed that I am aware that I have received the letter and their request.
I have told them at that time that I cannot pay the full amount requested due to the fact that I have used a part of them for daily living expenses - rent, bills, food and I will need the rest as well until I will find another job for daily living.
Mid September I have started another job, on a lower salary than my previous one and my tax code went back to normal.
End of Feb (didn't hear from them until Feb), OR asked me to fill in the budget / expenses form again and they have said that they want the redundancy money and that we can set up a plan to repay them.
I have sent them the new budget and documents and have told them that unfortunately I don't have the redundancy money anymore as I have used them to cover the monthly pay decrease over the past 6 months.
Last week they've told me by email that my 3 years IPA, has been suspended for the time being because no surplus income.
I am not aware of a 3 years IPA, the paper that I've signed it says until 5 Apr and it was to collect the taxes.
Now my questions:
- does every employee who declares BR once he's put on a NT code will have a NT code based IPA? For how long - until the end of financial year- or is it for 3 years?
- if you are on NT code based IPA, initially, where it says that is until the end of the financial year, this can be extended to cover 3 years? do they have to inform you and ask you to sign?
- do you have to see & sign the new IPA (3 years one) ?
- can an IPA be set up to collect the redundancy money? do they have to advise you about it?
- can they use the NT code IPA to collect the redundancy money and extended to last 3 years? do you need to see the agreement and sign it?
- why they've left it so late to inform me that I'm in a 3 years IPA? I thought that I'll finish with the NT based one on the 5 Apr
- how they will collect the redundancy money and when? how long I will be in this situation - how many years from now on, I will have to pay back?
- can a new IPA be set up now 2 weeks before AD?
Sorry for all these questions but I didn't find a clear answer to them.
Are all employees when their tax code changes to NT, put on a plan, NT code based IPA, to pay the taxes to the OR, as in most of the cases those taxes will be more than £20 and then they will be considered a surplus? Is this correct? And as they didn't have initially an IPA when this NT code will be set up - will it finish at the end of the financial year or it will last longer than that?
Thank you and I'll appreciate any thoughts
0
Comments
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I'll try to answer some parts:
An NT IPA only lasts until the end of the financial year in which you became BR - it is not extended into another financial year. However, if you get a new job during the financial year in which you become BR, then the NT IPA ends and you start paying tax as normal though the new employer.
My BR was a couple of years ago and I don't know if things have changed by the form I signed covered all aspects of the IPA - both the surplus income and the NT elements.
Once set, a surplus income IPA can be revised (up or down) at any point during the 3 years, the OR does not need a 'new' IPA form as such. However, its important to remember that an IPA is an agreement between you and the OR - if you don't agree you can try to discuss this with the OR0 -
An IPA has to be agreed....write back and say you have no surplus income and don't agree to an IPA. That gives them two weeks to get back to you or try to impose an IPO. Sounds like they are cutting it too fine.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Hi there,
I went to bankrupt last year November.
NT tax code has been applied from February.
I have paid tax amount to Clarke Willmot February,March and April.
This month I can see taxes from my wage has been not taken yet.Any idea why is this?
And most important question,HMRC says I am owed £126 on tax from last financial year and they have reduced my free personal tax allowance and will collect this amount during the this year.
Someone can explain pls?
How I can be owed tax if I paid this to CW?
Thank u in advance0
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