Housing Benefit - Bankrupt and Nil Tax Code

[matt37]

Hi, Re. Bankruptcy / Nil Tax Code and Housing Benefit Where would be the forum to gain advice on this matter please? Thanks

[ims21]

Hi

 

Are these all linked or are they separate matters?

 

If you can give a bit more info I'll move the thread to the appropriate place for you.

[matt37]

Thanks for your response. They are all inter-linked. I have been declared bankrupt, just been notified of nil tax code and very concerned that my HB award will be reduced to zero as they will assess my net income as high due to nil income tax. Although I will not see this money as it will be sent directly to my creditors via the Official Receiver's agent, I have learnt that some local authorities still see the nil tax as additional income. Many thanks, Matthew

[ims21]

Hi

 

As this seems to be more to do with HB and the tax code, I've moved you to the Benefits forum and changed the thread title slightly.

 

Lets see what responses you get here and we can always move elsewhere if need be.

[matt37]

Thank you very much

[abc123def]

You will be fine. You are only on a nil tax code so that when you receive the higher amount you can then pay your tax amount to the OR (or moonbeever) and you can inform the LA of that. Think of it as a student loan!

[matt37]

Thanks for the reply. I hope you are right. Common sense would suggest that the LA would see it this way i.e. my income has not increased but I have read some horror stories on various forums that HB awards have been stopped and demands for overpayment have been issued. I have informed my LA and provided all the nil tax code information and I await their reply. Fingers crossed...