Universal Credit

amaljoseph

Hi there,

I am very new to this forum, so please bear with me...

Basically, we (me & my wife) are on Universal Credit (UC) at the moment. However, I will start a new role, which probably won't qualify me to receive any UC. 

I am asking this question because my new employer wants to pay my rent under a scheme called the 'Manse' scheme, which basically lets my employer pay my rent and that will help them not to pay any tax/ national insurance on the rent money (which is taken before the wage is released, much like a salary sacrifice).

So, for example, say my wage is £45,000, and my employer pays my rent under the 'Manse scheme', which is £1,500/month - that is calculated as £1,500x12 months = £18,000, which will then be deducted from the gross pay £45,000-£18000 = £27000 (which will now be my yearly wage).

I think this is where I am getting a little confused, and I have the following questions: please help...

1. Is this Manse scheme good to go for?
2. Or should I take my whole wage and say no thank you for the 'scheme' to my employer?
3. Should I declare £45K on my UC journal, or should I declare £27K for my UC journal?
4. I also want to buy a house in the coming year. Will £27K and a letter from the employer about the rent payment of £18K be sufficient for a mortgage lender (if I opt for the 'Manse scheme')?
5. Or will the £45K look good on my credit rating?

I look forward to receiving some good advice. 

Thanks

AJ

Brie

Oh my!  This is something new to me.  

A quick google suggests that the employer might be a church and the rented property is actually church property.  Apparently this is not unheard of to get people to live in church property to help keep it from deteriorating.  What I can't see is how the rent is actually dealt with.

BUT it sounds a bit like salary sacrifice which is a very well known thing and employers allow their staff to sign up to SS for the payment of their pensions.  Because the pension contributions are deducted (sacrificed) before the tax and NI is calculated there are savings for both employer and employee.

When an employee has SS but wants to get a mortgage the employer* provides a letter that states the full salary rather than the lower one after the sacrifice.  On that basis I would think you would need to declare £45k for UC but also could state £45k for the mortgage application.  

*I used to help provide these letters for my previous employer, a very large national firm.  

Maybe others have a different perspective on this?

sheramber

because my new employer wants to pay my rent under a scheme called the 'Manse' scheme, which basically lets my employer pay my rent and that will help them not to pay any tax/ national insurance on the rent money (which is taken before the wage is released, 

If you rent is deducted from your salary then your employer is not paying your rent- you are paying it.

Bookworm105

think logically, you are getting the rent paid for you because you work for them.
If you don't work there, you won't get them to pay the rent on your behalf

Obviously your income for UC purposes includes the rent, it is part of your total pay package.
If you still get UC on a 45k income then that is politics of envy territory. I get zero.

amaljoseph

Thank you all for your insight. Really appreciate it.