A quick reminder if you are going through insolvency: for the remainder of the tax year following bankruptcy, an ‘NT’ (no tax) PAYE code is applied to existing employments. However, if you have a change of job after the date of the bankruptcy but in the same tax year, the ‘NT’ (no tax) PAYE Code is NOT applied to the new employment. This can make it costly to change jobs in the tax year of bankruptcy. You as a taxpayer should also ensure that the NT Code is ONLY applied for the year of bankruptcy and not accidentally applied for the following year as well, otherwise you could find yourself with a large tax underpayment to deal with.

This entry was posted on Friday, May 26th, 2017 at 12:06 pm and is filed under Tax News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.