Tax code for a bankrupt employee

[Alps]

I'm just wondering if anyone can confirm that someone who has been made bankrupt should be on an N/L tax code until the April year end?

I have taken on a new employee about three months ago, they have been put on a week 1 tax code but I found out that they were made bankrupt in September last year. I thought this should mean they don't pay tax until the next financial year but they don't know I know about the bankruptcy and I don't want to bring it up unnecessarily as it isn't an issue for the business. I don't want them missing out on income either though!

Thanks

 

[Scalloway]

HMRC will issue you with a tax code if they think the code needs changed. I would leave things as they are.

 

[SteveHa]

As Scalloway says, HMRC will tell you what to use. To add some context, unless a part of a fit and proper test, there is no reason for the employee to have divulged their bankruptcy to you, and so how would you know?

The only information you have to go on and to use is the new starter declaration and, if applicable, form P45. Nothing else is your responsibility.