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sharon555
Starting Member
2 Posts |
 Posted - 13 May 2009 : 14:16:38
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| if you go bankrupt what is the NT no tax thing,ive not heard of it thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 13 May 2009 : 14:32:52
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Hi
if you declare bankruptcy and you are working and paying income tax then the requirement for you to pay the tax is effectively suspended and the inland revenue becomes a creditor along with all the others.
An NT tax code is applied by the inland revenue on instruction to your employer.You will therefore receive more money in your monthly salary payment as no tax is deducted. A collecting agent nominated by the Insolvency Service (probably Moonbeever) will contact you and arrange for the sum that would otherwise have been paid in tax to be paid by you, directly to them.
This arrangement lasts from the date of the arrangement until the end of the current tax year in which bankruptcy was declared. At this point your tax code will revert to the norm, the arrangement will cease, and you will pay tax on your earnings as normal.
If you were to change jobs once the arrangement has commenced it would cease automatically and you would pay tax as normal.
John White
England Jackman & Spacey |
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feather
Junior Member
185 Posts |
Posted - 16 May 2009 : 21:17:25
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| hi, i just wanted to ask a question on the back of this, i have just started working in a hr dept, will my boss receive the information on this to change my pay? should i tell them about it? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 16 May 2009 : 21:28:51
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Your payroll department will receive the information.
I would check with your contract of employment to see if you need to inform your bosses.
The glimmer gets brighter all the time
Jan
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feather
Junior Member
185 Posts |
Posted - 16 May 2009 : 21:34:16
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thanks, im worried because our office has received other things like this and we send them onto payrol :-(
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 16 May 2009 : 22:25:56
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quote:
Originally posted by feather
thanks, im worried because our office has received other things like this and we send them onto payrol :-(
When you send these things onto Payroll do you query them or mention them to the Company Managers? Chances are that you have a quick look and maybe comment on them within your department and then move on to the next item of work.
You should definitely check your work contract to see if there is anything mentioned about BR but otherwise I wouldn't worry.
Receiving a new tax code, your name appearing in the local paper, the BR appearing on the Insolvency Register and London Gazette are things that everyone on this board worries about but at the end of the day they are nothing compared with the mess that we are all in before we declare BR.
Try not to worry about anyone finding out you are BR and concentrate on the fact that you are resolving your financial problems. |
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if you go bankrupt what is the NT no tax thing
