Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

By faeriesue
#460883 Evening all

I petitioned for my bankruptcy on 26th September 2013 and had "the phone call" with the OR approximately 1 week later.

The week the call was due all my colleagues at work were told overtime was being stopped. I had been doing 6 hrs a week overtime for the past 18 months and this now meant my weekly take home was going to be £280 instead of £330. When I completed my bankruptcy petition I said that whilst my overtime wasn't guaranteed it was regular and my budget was based on that.

My budget left £40 a month which I fully expected to be paid into an IPA.

When I took the call I told the OR straight away how much my wages were going to be reduced by. He said he would have to start again with his calculations as they were based on the figures I gave in my petition. He said I would need to provide pay slips to prove this. He then explained the NT code.

At the beginning of November I e-mailed the pay slips to him and a couple of weeks later I noticed my tax code had changed to NT.

I have not heard anything from the OR about an IPA or about paying the tax back. Is this usual? If I wasn't expected to pay into an IPA would I be told or do I just have to wait until I am discharged?

Also, when I have to pay the tax back will I have to pay the tax backdated to when my tax code changed?

Thanks in advance for any advice.
User avatar
By TalbotWoods
#460893 Hi and welcome

Unfortunately it is not unusual for the NT collection to be delayed. Also they may not have yet recalculated any potential IPA, and as all the paperwork will be together, then that might be why this has occurred.

A word to the wise if I may, please put that element of your pay aside, and I would strongly suggest you give the ORs office a prod, either by a letter or by email (to cover yourself), asking what they want done with the Tax and what happened about the recalculation.

HMRC will eventually remind the OR and the OR will want ALL the back tax, and if it is delayed in being given to him, he does has the option to suspend the discharge until it it paid.

Let them know and this is dealt with now, without causing hassle later on.

Something else to keep an eye on is that the NT Tax Code will finish at the end of this tax year (March/April), but your employees may forget to apply the correct tax then, so they may also need chasing!

Tim
By faeriesue
#461003 Thanks for the response and helpful advice Tim, I have done as you suggested and emailed the OR's office...

Will wait and see what happens :?