| T O P I C R E V I E W |
| les |
Posted - 06 June 2009 : 08:09:43
I was made bankrupt on 2.5.2008 and (according to the on-line Insolvency Register) automatically discharged on 2.5.2009. I have a BRU until 7.10.2011 but no IPO/IPA. At the time of agreeing the BRU I was told that I had nothing to pay back as I didn't have enough disposable income. The OR's office have recently be in touch regarding paying back an amount I received relating to PAYE during the period I had an NT tax code. This could amount to around £1500.00 or more. Can they still request that I pay this money to them, even though I have been disharged and no IPO/IPA had been implemented prior to the discharge? Under what legislaton? I understand that they cannot issue an IPO/IPA after I have been discharged, so how will they be likely to charge this amount to me? By invoice, or other means? Will I have to pay it? My circumstances have changed since going br and I have had to cease employment due to permanent ill-health, so my income has greatly reduced and I don't know how I will be able to afford to pay this money back. Any help would be gratefully received.
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| 15 L A T E S T R E P L I E S (Newest First) |
| les |
Posted - 07 June 2009 : 12:51:26
Thanks Jan. I will let you know what happens. |
| Niobe |
Posted - 07 June 2009 : 10:45:48
Let us know what the outcome is Les.
The glimmer gets brighter all the time
Jan
xx |
| les |
Posted - 07 June 2009 : 00:17:41
Thanks everyone for your help. I guess I'll have to speak to the OR and see what I can sort out with them. |
| Sparkle83 |
Posted - 06 June 2009 : 19:38:41
As far as I was aware, there is a difference between a NIL TAX IPA (what you have), and a standard IPA (which is based on your I&E).
The Nil tax comes in to effect as soon as you go BR, when you get that set of paperwork and have to signed the form about tax and national insurance. This is the point where you sign regarding nil tax IPA.
The I&E wouldnt count against the nil tax IPA, but it would mean you didnt get a standard IPA on top of the nil tax. to the best of my knowledge, all bankrupts paying tax through PAYE are liable for a nil tax IPA automatically for the ta year they go BR.
Mine was early march, so no nil tax put in place (no time), but they want me to do a tax return at the end of the year to claim it back for the OR.
TBH,I think you are going to have to pay it back as technically you agreed to it, and it is standard procedure to get a nil tax IPA. I'm really sorry.
Weeks of BR
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| gettingoutofdebt |
Posted - 06 June 2009 : 18:29:37
Yep, either this money is going to be claimed by the OR or HMRC.
The ORs 'may' have powers similar to HMRC in that they are able to reclaim money for the period that you were BR at a later date in the same way that HMRC can claim repayments of taxes several years later.
If you don't have the money then you should speak to the OR and explain the situation. |
| les |
Posted - 06 June 2009 : 14:02:28
Ok, thanks for your thoughts. |
| RHB |
Posted - 06 June 2009 : 13:51:20
The sticking point will be that the money was never actually yours I suspect. If the OR office didn't take it then presumably the tax office still could? |
| Niobe |
Posted - 06 June 2009 : 13:47:35
I totally agree that this money should be paid straight across to the OR rather than you having to do it.
However, I am still of the opinion that it will have to be paid across, but that is just my take on the matter and may not be correct at all.
The glimmer gets brighter all the time
Jan
xx |
| les |
Posted - 06 June 2009 : 13:31:30
I agree RHB. The problem now is that because I was told I had nothing to repay, I have used this money to suppliment future months when my income went down to considerably less that it was when I went br. |
| les |
Posted - 06 June 2009 : 13:29:10
Yes. And I understand the reasoning behind it, ie that HMRC should be treated like any other creditor so that any PAYE I am due to pay in the tax year I was made bankrupt is treated like any other debt I owe. I also understand that the extra money in my paypacket should have been claimed back via a NT tax only IPA/IPO, but the OR told me that I did not have sufficient excess income to do this, even with this extra money. No IPA/IPO has been initiated as yet and now that I have been discharged from br, an IPA/IPO cannot now be raised. However, I am concerned that the OR may be able to have my discharge reversed in order to raise an IPA/IPO. |
| RHB |
Posted - 06 June 2009 : 13:25:56
It would make more sense if the tax money went straight to the OR's office from your pay packet & then there would be no temptation to spend it. |
| RHB |
Posted - 06 June 2009 : 13:23:13
Were you told you were going on a nil tax code? |
| les |
Posted - 06 June 2009 : 13:09:47
Thanks for that Kallis3. I'm hoping an expert can throw more light on the subject. |
| Niobe |
Posted - 06 June 2009 : 13:07:48
I think you get the nil tax code anyway, depending upon the time of year you declare BR.
Because you don't pay tax at all during that period, you should pay it across to the OR, so I would think you are still liable for that sum.
Hopefully one of the experts will be along with further advice.
The glimmer gets brighter all the time
Jan
xx |
| les |
Posted - 06 June 2009 : 12:43:29
Thanks for your thoughts RHB. However, to be in an IPA the OR and I would have to have signed the agreement. Seeing as no agreement has ever been mentioned, let alone signed, I do not have an IPA at this time. Because I have been discharged from bankruptcy, the OR cannot now issue an IPO or IPA unless they can, somehow, reverse my discharge. The only way I can see that they could be able to do this is if I have not fully co-operated with them, which I have. So again, how will they be able to 'bill' me for this money?
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