| T O P I C R E V I E W |
| petermcc |
Posted - 17 July 2008 : 09:29:16
Looks like a cock up in my favour.
I am automatically discharged today and have not received any paperwork reference the IPA which I agreed and signed at my original OR meeting. My understanding is that as it appears the OR did not sign and process the agreement and I am discharged this will no longer be due.
As if this wasn't enough, my tax code was zeroed around September last year non of which I have paid to anyone and remains at zero months after the end of that bankrupt tax year. I have seen somewhere on either an inland revenue or in the insolvency case help manual, that tax not collected during the bankruptcy period is now not collectable. I assume that when I contact the Inland Revenue they will want repayment of the tax for the period April up until today, however as I was bankrupt until today I beleive this is not collectable either. Can anyone confirm. We are talking in total thousands of pounds !!!
Thanks and possibly thanks OR and IR |
| 8 L A T E S T R E P L I E S (Newest First) |
| petermcc |
Posted - 17 July 2008 : 17:16:02
Thanks again Suzanne,
You wrote "As you didn't earn this money until after your bankruptcy, you cannot then claim that any underpayment of tax falls into your bankruptcy for the period after April"
Tax up to April 2008 was also earned after my bankruptcy and those underpayments do fall into my bankruptcy what is different after April.
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| Suzanne |
Posted - 17 July 2008 : 16:52:21
Hi Peter
Unfortunately the IR have the upper hand here. When they find out you are receiving an NT code they will readjust your tax code to recoup the difference.
With bankruptcy provable debts are only those that can be stated as owed as at the date of the bankruptcy. As you didn't earn this money until after your bankruptcy, you cannot then claim that any underpayment of tax falls into your bankruptcy for the period after April.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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| petermcc |
Posted - 17 July 2008 : 16:10:42
Zoe,
What do you think ! yep your quite right ! |
| zoe |
Posted - 17 July 2008 : 15:32:20
Have you kept the money to one side??? |
| petermcc |
Posted - 17 July 2008 : 15:18:08
Thank you Julian,
To be clear my NT tax code has continued beyond the end of the tax year in which I was made bankrupt. I enquired of my employer who were originally given an NT code until further notice when the IR originally re coded. As no notice has yet been given this has continued meaning that from April 08 through to today July 08 I have continued to benefit from a nil tax code. Everything I have read states the NT code should run only for the remainder of the tax year in which bankrutcy was declared and therefore should have ceased in April, who does this wrongly coded tax benefit, IR, OR or me ?
Suzanne clearly from her posting believes the IR , she is stating "as you had a NT agreement that ended in April you are only liable for tax from April onwards" however my position is that the NT has not yet ended and I remained bankrupt during that period.
I will be contacting the IR upon receipt of July's pay slip and putting them wise as tax from discharge, today onward will definately be due. the question is what of the tax between April 08 and July 17th 08 ? |
| JulianDonnelly |
Posted - 17 July 2008 : 11:37:29
Hi Petermcc and welcome to the forum.
Indeed, it is more than likely the PAYE overpayment went directly to the OR to be disbursed on a pro-rata basis to your creditors.
Tax not collected (NT tax code) would form part of your disposable income and be considered in an IPA/IPO. However, if you've been discharged without an IPA/IPO taking place, then that money is yours and not collectable.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| petermcc |
Posted - 17 July 2008 : 11:33:08
Thanks Suzanne,
I rather thought you were bankrupt until discharged.
As a matter of fact during my bankruptcy I received notification from IR that a cheque for a PAYE overpayment refund would follow. In the event a letter followed as it was realised that I was bankrupt and the monies were not forwarded. I assume this money went to the OR therefore would the reverse not follow that tax not collected during bankruptcy would be vested in the OR and is therefore not collectable by IR. Any thoughts ??? |
| Suzanne |
Posted - 17 July 2008 : 11:02:26
Hi peter
If the OR did not sign the IPA before you were discharged, then they cannot enforce it now.
The IR can ask you to pay any tax not paid after the date of bankruptcy. However, as you had a NT agreement that ended in April you are only liable for tax from April onwards.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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