What Is a NT or Nil Tax Code?

Is my employer notified in bankruptcy?

What is an NT Tax code?

Will I owe taxes in bankruptcy?

Is my landlord told I am bankrupt?

One of the more important questions and one that seems to be on everyone’s mind when they are making the decision to go bankrupt, is who will be told I am bankrupt?

Bankruptcy, while a matter of public record, and published in the London Gazette, and possibly a bankrupt’s local papers, is not something that is shouted by the Town Cryer to all who will listen.

Yes, it is published, but for the most part, people would not be aware you are bankrupt, and you are not forced to wear a large scarlet B on your chest.

So unless someone reads the papers, or you tell them, there is little chance they will know you are bankrupt.

That and also if the Receiver/Trustee in your bankruptcy does not need to speak to them; which in most instances, they do not.

People worry as to if their landlord or employer will be notified and again, in most instances, no.

If you can provide a tenancy agreement, your landlord does not need to be notified and may not be anyway. If the Receiver did contact the landlord, it is to insure you do not have an interest in the property; so if you can show this by other means, such as a tenancy agreement, they do not need to be notified.

I have heard of rare instances where a landlord has been notified and the tenant has been asked to move. This opens up a different can of worms as some tenancy agreements do have a clause in them that states if a tenant is bankrupt the landlord can have them move.

You can review your tenancy agreement to see if it has this clause, and if it does, you may wish to speak to your landlord. Just because the clause is in your tenancy agreement, doe snot necessarily mean the landlord will exercise it.

Your employer does not need to be notified as well. If the Receiver needs information on your job, it usually will be something you can provide in the form of wage slips.

So unless the receiver has specific questions or needs documentation you cannot provide, your employer is not notified.

One thing that can occur is the Receiver can have a NT or no tax, (nil tax) code placed on your wages.

This means that any taxes you usually pay are now forwarded to the bankruptcy and not the tax man. This is for the tax year of the period of your bankruptcy.

This does not mean you will owe taxes, it just means the taxes you would normally pay are now paid to the bankruptcy.

If your employer or payroll department, understands this code and where and why it can be placed, they may put two and two together and assume you are bankrupt. But they are usually not notified directly that you have gone bankrupt.

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