Question:
I became bankrupt yesterday, what now happens with my paye?
Answer:
An Official Receiver will be appointed to review your forms and speak to you.
You are allowed to work and earn a wage, and if you have a surplus of income each month after your living expenses, you can then be required to pay into the bankruptcy for three (3) years.
If you have no surplus, you will not be required to pay into the bankruptcy, however the Receiver can have a NT or no tax code placed on your wages. This means that any taxes you would usually pay are paid into the bankruptcy. This does not mean you will owe taxes, just that the taxes you would have paid are now paid into the bankruptcy. This is for a period of the tax year you are bankrupt.
Thank you for letting me help you.
Jon
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