Hi there. I recently lost my job during my bankruptcy term, although having discussed my leaving with the company since then, they are prepared to pay me a lump sum of money as salary as a good will gesture. My bankruptcy payments have been based on the OR taking my tax through an NT code as my salary at the time didn't allow for any expendable monies for him to take.

My NT Code was set up from the end of February which was meant to be my last salary payment and the revenue tell me they will be back dating my tax to the date of the bankruptcy order and paying that tax directly to the OR. So, if i now get paid this leaving salary, the tax will not be deducted and will be paid to me as the NT Code is in force until the end of March (being the end of the financial year).

I am wondering if now, as i have lost my job, i should retain this money as ongoing living expenses. The OR as far as i know wont know?? although i'm aware this is contentious. Would the revenue let the OR know that i have been paid more money after the TAX has been refunded? and the TAX with it?

Not sure what to do. Not having an income, i would hate to lose the money as its three months salary..?

Any thought or advice would be appreciated..