IPA & Tax Code. What it means for me

yellowbackpack · 22 January 2020 at 4:20PM

Hello everyone

I have a question about my tax code and paying an IVA.

I currently earn around £360 per month working part time - when I filled out my I & E form, it was evident that I would be around minus £430 just to live so the OR told me that I wouldn’t need to let her know if I did overtime unless it was over £430 worth.

Now I’m worried about the tax code being set to NT and what this means for my pay packet. As far as I am aware, I won’t see any benefit of tax returned and instead this will be given to the OR as some sort of IPA payment?

Do they take that directly from my wages or do I have to make a payment to them?

Does this count as making an IPA payment or is it separate?

I’m -£430 a month so i’m really worried they are going to make me pay towards an IPA for 3 years.

I’ve had a look around the forum for an answer but can’t seem to spot anything that’s answering my question but i’m hopeless when it comes to tax etc.

thanks for any help, as always

Mouse007 · 22 January 2020 at 7:54PM

A NT code means No Tax. It is issued for the rest of the tax year when you go bankrupt. Any tax "saved" must then be handed over to the OR.

You can earn over £1,000 a month before having to pay tax.

If you are only earning £360 a month you are no where close to paying it, so none will be saved by a NT tax code and nothing will need to be paid to the OR.

Nothing to worry about. You can completely ignore this, it won't cost you a penny.

yellowbackpack · 22 January 2020 at 9:47PM

That’s great news.

Thank you very much for the fast response!

IPA & Tax Code. What it means for me

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