Why does your tax code change if your are made BR

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b178

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Post by b178 » Mon Jan 28, 2008 11:54 pm
Just reading through all the various messages and have a question. Why does your tax code change if your are made BR
 
 

MelanieGiles

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Post by MelanieGiles » Tue Jan 29, 2008 1:04 am
Hi b178

This relates to a rather strange way HMRC account for tax payments in insolvencies, and means that for the remainder of the fiscal year in which you are made bankrupt (ie up until 5 April of the current of next year) you are not required to pay any tax or national insurance to HMRC. This does not mean, however, that you can keep the money - it just means that you have to hand it over to the Official Reciever under an Income Payments Agreement.
Regards, Melanie Giles, Insolvency Practitioner
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