DRO.... disposable income calculation

NewUserHere

Please can somebody tell me....

for a DRO you have to have a disposable income of less than £50pm.

Is there a guide that explains how this is calculated when you consider things like Clothing, Entertainment, etc, etc...........

Also, is it based on the current tax years income or the income for the previous year...........

wba31

It's based on current earnings. If you are self employed you will need to provide proof of income for past 6 months for example, and an average after tax and NI payments are made.

The expenditure is then based on your household, and must fit into the common financial statement, which most free advice providers work to, or to something similar.

Best thing to do is have an appointment with someone free (CAB, National Debtline, or CCCS (who are now called Step Change Debt Charity apparently)), tell them you are interested in a DRO, and they will see if it is viable for you

NewUserHere

Over what period will they consider my income?

I went from PAYE £225pw(pre) to self-employed about 3 months ago but one problem after another has seen a wage of about £180pw and when you look at 2 weeks off per year about £170pw.