Couple going BR is SOA split?

GoingUnder

Hi

My wife and I are both filing for BR (unfortunately 2 loans are in joint name).

I am filling in the forms but have got to the Incoome and Expenditure.

Do we both list the same expenditure?

We only have my income so hers will show NIL apart from Tax credits/Child Benefit

Should she therefore list nil outgoings and I list them all on mine?

I don't want us to show double the amount, nor do I want it to look like I only have half the outgoings from my income.

Wouldn't it be easier of they had a 'couples' form!

Advice greatly appreciated.

Thanks
GU

Ineedaname

It would be great if they had a couples form but you can't go BR as a couple, lol.

The standard advice is to put all your income on your form and your wife's contribution to the household expenses, then list all expenditure. Then do the same in reverse on your wife's form. Each form would then perhaps list some personal expenditure, such as prescription costs for your wife but not you...

I guess in your case both forms will be the same as your wife has no income. However, you will need to adjust your income on her form so she has no surplus whatsoever, as you can only show the surplus once in this case.

I hope that makes some sense. You could put a sample of each up here for us to look through if you like? Members will be able to advise on allowances and anything you might be able to change.

GoingUnder

Thanks for that

How would I reduce the income on her form without making it different?

Also, am I right in saying that Child Benefit and Tax Credits don't count as income for the OR?

Thanks

GU

Ineedaname

Say your net income is £1500 a month and after expenditure (excluding debt payments of course as you won't have those after BR) you have a surplus of £50, then show on your wife's form an income of £1450 as that is your contribution to the household expenditure on her SOA, make sense?

ALL benefits need to be shown as income. I guess the Tax Credits are paid to you so include them on your form and then reduce as above on your wife's. Whoever is in receipt of Child Benefit needs to show it on their form only, so if your wife receives CB then she has a small income and you can reduce your contribution to the household expenditure on her form accordingly.

If you look at the link I gave you in my previous post, you will see how the income is split. Partner's income is purely partner's contribution to household expenses, not entire income. Try filling it out and hopefully it will start to make sense.

GoingUnder

that makes sense,


thanks again

Angiepange

GoingUnder wrote: »

Hi

My wife and I are both filing for BR (unfortunately 2 loans are in joint name).

I am filling in the forms but have got to the Incoome and Expenditure.

Do we both list the same expenditure?

We only have my income so hers will show NIL apart from Tax credits/Child Benefit

Should she therefore list nil outgoings and I list them all on mine?

I don't want us to show double the amount, nor do I want it to look like I only have half the outgoings from my income.

Wouldn't it be easier of they had a 'couples' form!

Advice greatly appreciated.

Thanks
GU

We had a similair dilemma when we went BR with how to present our SOA.

All we did was put the same outgoings and the same income on each form.

On my SOA we put my income as 0 and then under question 6.6 'do you receive any other income ie benefits' I put down our child benefit and child tax credit. I put my husbands full wage as his contribution.

On husbands SOA we put down his full income and under question 6.7 we declared my contribution (child benefit and child tax credits)

So both our SOA's exactly mirrored each others in total income and total outgoings.

Had no problems this way

debtinfo

As angie says, not worth messing with it really, just stick it all down as the OR has all the info from both forms, so no point reducing your income on her forms.

BTW if you were running a partnership business together then there is a form for joint bankruptcies but if it is just personal debt then it is one each

Ineedaname

So the OR will suss if a surplus is shown on both SOAs it's really only one lot of surplus? If so then that's cool and will save the OP a lot of messing around.

Thanks guys, I didn't realise it would be OK like that.

GoingUnder, sorry for the wrong advice last night.

debtinfo

no probs

the thing to bare in mind is that you are not doing a surplus calculation or an IPA calculation, that is the OR's job, all the forms are asking for is information as simple as that, peopleoften over think it. The OR has an entirely separate calculation to make which takes into account many factors, particularly where it is a couple with split finances, all the OR is asking for is a list of incomes and a list of outgoings

Ineedaname

Righty-ho, I'll remember that next time I'm the only night owl.

fermi

Also you will able to discuss and fully explain the circumstances/I&E in your interview.