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Ade65
Junior Member
187 Posts |
 Posted - 07 December 2008 : 14:31:30
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Hi,
I work for a university, and am currently on a fixed-term contract that is coming to an end. I'm in the redeployment phase now - so if I get a different job in a different department of the university, how does that affect the Nil Tax code? Does it stay as NT until the end of the tax year because I'm with the same overall employer, or would it be treated as a new job and put me back to a standard tax code?
Thanks,
Ade |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 07 December 2008 : 15:09:51
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Hi Ade,
It is my understanding that you will remain on the NT tax code for the remainder of the financial year, even if you technically change employers.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Ade65
Junior Member
187 Posts |
Posted - 08 December 2008 : 07:26:50
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Thanks, I thought that may be the case but wasn't sure.
Ade |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 08 December 2008 : 08:24:05
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Hi Ade
I found this in the Insolvency guidelines:
77.23 Nil tax codes
HMRC issues a claim in the bankruptcy proceedings to cover the income tax due for the whole of the tax year in which the bankruptcy order is made, less the amount of tax paid and deducted up to the date of the bankruptcy order. A nil tax (NT) code is applied to the bankrupt for the remainder of the tax year post the bankruptcy date with the effect that he/she does not pay income tax for the rest of that tax year, and thus is in receipt of extra income.
If the bankrupt changes employer during the course of the tax year in which he/she is made bankrupt (which HMRC deems to be change in source of income), a new tax code will be issued, and the bankrupt will be required to pay tax on his/her earnings from the date of the change of employer. If the bankrupt has more than one source of income at the date of the bankruptcy order, the NT code will apply to all sources of income.
This extra income may be claimed by the official receiver under an Income Payments Agreement (IPA) or Income Payments Order (IPO.) When a nil tax IPA or IPO is obtained, the official receiver must send notification to the local tax office [note 3] with a copy of the bankrupt's tax disclosure form [note1] so that notification can be sent to the official receiver's collection agents when the NT code is notified to the bankrupt's employer.
It can take some time to implement the new tax code, and a refund of the tax paid between the bankruptcy order and the NT code being issued is payable in these circumstances. HMRC will automatically offer the refund to the official receiver or other trustee appointed. The official receiver must respond to the offer and forward a copy of the tax disclosure form [note 1] in order to claim the refund.
For more information on NT IPAs and IPOs see Chapter 31.7 Part 3 and Chapter 31.7 Part 7 - Income Payments Agreements and Income Payments Orders.
Jo
x
18 Weeks down 
34 to go 
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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Edited by - Needafriend on 08 December 2008 09:19:13 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 08 December 2008 : 15:01:25
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Thanks for the info Jo.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 08 December 2008 : 15:22:55
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Oooh i hope that was ok, i was not undermining you Julian. :-)
Jo
x
18 Weeks down
34 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 08 December 2008 : 15:56:40
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Not at all ... keep up the great work!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Ade65
Junior Member
187 Posts |
Posted - 08 December 2008 : 18:37:47
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Thanks, that extra info makes it clear - to me at least! - that a change within the Uni, even if it's a post I get not relating to redeployment, will still attract the NT code as it's from the same source.
Thanks,
Ade |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 08 December 2008 : 20:58:13
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Glad i could help Ade.
Jo
x
18 Weeks down
34 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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Topic |
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Changing jobs with same employer - tax code?
