Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • sboy90
    • By sboy90 8th Feb 18, 9:01 PM
    • 1Posts
    • 0Thanks
    IPA Query
    • #1
    • 8th Feb 18, 9:01 PM
    IPA Query 8th Feb 18 at 9:01 PM
    I became bankrupt in May 2017, I had no disposable income and so I was issued with a NT tax code and an IPA to pay until April 2018. Assuming I have no change in circumstances between now and April 5th 2018 and the IPA is fulfilled (Last payment is due end of March) what happens if I got a new job or pay rise post April 5th but before discharge in May 2018. As far as I can see from the IPA I signed it was to pay until the end of the current tax year. Can the OR issue another IPA if I were to notify him of a new job or pay rise before i'm discharged but after the current IPA finishes?

Page 1
    • luvchocolate
    • By luvchocolate 9th Feb 18, 10:16 AM
    • 1,530 Posts
    • 1,396 Thanks
    • #2
    • 9th Feb 18, 10:16 AM
    • #2
    • 9th Feb 18, 10:16 AM
    Hi a nil tax code I.P.A runs for the current tax year you were made B.R unless you change your job. As you paid the tax to the tax man before it really makes no difference to you as this money was not yours anyway.

    A surplus income I.P.A is completely different, this is set up if you have a surplus of 20 or more a month.
    If this has not been set up and agreed before discharge it cannot be started, so once you are discharged you are free to earn whatever you can.
    • TheGardener
    • By TheGardener 9th Feb 18, 7:21 PM
    • 2,277 Posts
    • 2,169 Thanks
    • #3
    • 9th Feb 18, 7:21 PM
    • #3
    • 9th Feb 18, 7:21 PM
    You have to tell the OR of any changes to your income within 21 days of it actually happening. As luvchocolate says, the NT element of the IPA will end at the end of the financial year in March or when you start a new job - whichever comes first. From the start of the new financial year your tax code will revert to normal.

    However, if you are also paying the surplus income element of an IPA - that runs for 36 payments (3 years) so if you income changes for the better (or worse for that matter) within those 3 years, you will need to inform the OR and they may increase or decrease your IPA accordingly.

    If your outgoings rise as a result of a new job (more transport costs etc) - then ensure those new costs are also taken into account.
    If you haven't got a surplus income element of an IPA - then the OR cannot set one up after your are AD.
    Last edited by TheGardener; 09-02-2018 at 8:05 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

90Posts Today

1,527Users online

Martin's Twitter
  • RT @mmhpi: Third time lucky? After being delayed twice, tomorrow MPs are due to debate our #RecoverySpace proposals in parliament. @helen_u?

  • Just a quick note. I've been overwhelmed by the strength of support by my campaign to stop facebook fake ads today?

  • RT @mmhpi: On the eve of tomorrow's #RecoverySpace debate in parliament, we just delivered our 10,000 letters to the Chancellor. People in?

  • Follow Martin