bankrupt and tax

Get expert opinion. This is the place for new questions to be posted.
7 posts Page 1 of 1
 
 

orchid5

User avatar
Posts: 1814
Joined: Sat Jul 05, 2008 2:37 pm
Location: United Kingdom

Post by orchid5 » Sat Aug 07, 2010 7:44 am
Hi all hope you are all well, shame about the weather though. My question isnt related to me but someone that i work with who unfortunately has been made bandrupt. This person was in a DMP but firstcredit decided to go down the bankrupcy route, it has backfired as the house isn't going to the reciever but what this person has been told is that their tax code will go to 0, now if i'm reading that correctly does that mean a higer rate of tax as there is no personal allowance now or am i completely off the beaten track?
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.

IVA COMPLETED August 2012, received Completion certificate 18.4.13.
 
 

kallis3

User avatar
Forum Expert
Posts: 76066
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Sat Aug 07, 2010 7:56 am
Hi,

It means that for the remainder of the tax year your friend won't pay any income tax.

However, what they would normally have paid (at the usual rate) must be paid to the Official Receiver.

Next April the tax code will revert back to normal.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

orchid5

User avatar
Posts: 1814
Joined: Sat Jul 05, 2008 2:37 pm
Location: United Kingdom

Post by orchid5 » Sat Aug 07, 2010 7:58 am
Hi Kallis, like an early bird! Many thanks for that one, i shall tell my colleague when i see them next week, i'm sure they will be over the moon at that one. Hope you are well.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.

IVA COMPLETED August 2012, received Completion certificate 18.4.13.
 
 

orchid5

User avatar
Posts: 1814
Joined: Sat Jul 05, 2008 2:37 pm
Location: United Kingdom

Post by orchid5 » Sat Aug 07, 2010 7:59 am
like me i mean!
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.

IVA COMPLETED August 2012, received Completion certificate 18.4.13.
 
 

kallis3

User avatar
Forum Expert
Posts: 76066
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Sat Aug 07, 2010 8:02 am
[:D]

I'm very well thank you. I'm only up early as daughter and fiance had to get up early for work and assorted dogs also decided they wanted to go out and wouldn't settle back down again!

Hope you are well also.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Julie

User avatar
Posts: 9503
Joined: Thu Feb 14, 2008 10:56 pm
Location: United Kingdom

Post by Julie » Sat Aug 07, 2010 9:45 am
Just to add it does depend on when the BR order is made, hubby went BR in February and no changes to his tax code for the duration of his BR.
 
 

orchid5

User avatar
Posts: 1814
Joined: Sat Jul 05, 2008 2:37 pm
Location: United Kingdom

Post by orchid5 » Sun Aug 08, 2010 10:44 am
Thanks Kallis/Julie, i think my colleague has been told that their tax code will go to 0 so i think that they will be in the situation whereby any tax that they would've paid over is as Kallis has indicated. The silly thing is that the company who made this happen aren't any better off as the payment my colleague has been asked to pay for the next 3 years is £116 and apparently the house is safe.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.

IVA COMPLETED August 2012, received Completion certificate 18.4.13.
7 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”