Can anyone please clarify for me exactly what happens to your income tax during BR? I understand you get a Nil tax code, but what exactly does this mean?
It means that you don't pay any tax directly to HMRC, but the equivalent that you would have paid is paid over the Official Reciever for the benefit of your creditors.
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Do you have any idea how this would work if we are to use childcare vouchers (busy bees), which pay the childcare provider before tax is deducted? Would the OR have a problem with us doing this, as it would mean the creditors would receive less tax than they would otherwise?
Income Tax?
Posted - 19 July 2008 : 15:57:07
