Incoming and Outgoing confusion

lian332 · 16 June 2019 at 11:54PM

Hi,

I'm currently in the process of completing my application and I've hit a problem.

Income
======

I'm on UC and my gross benefit figure amounts to £643.71

I have 2 deductions, made against the above...

£47.67 (for repayment of a tax credit overpayment debt, years 2017-18), around £1100 outstanding
£29 (for repayment of UC budgeting loan), around £350 remaining.

Having studied the official BR form, I cannot see anywhere where I can declare this situation.

Outgoings
========

Rent - £390 pm (£90 per week + £15 per fortnight... I have to pay extra when my little girl stays over)

Shopping - £200 pm

Mobile - £10 pm

Bus - £30 pm

The problem
==========

After deductions, I only 'see' £576 and at present for outgoings are approx £600 (approx), but in actuality, I 'know' I will have little or no change out of the 'gross' benefits figure of £643.

As I understand it, both my 'debts' to the UC (loan and tax credit overpayment) will be cleared under the BR, but assuming I can 'show' a income / outgoings balance sheet which 'tallies' up, based on the £576, the OR 'might' interpret that I have a surplus (the sum of the deductions), which would result in an IPA.

Assuming, under BR, I am allowed to receive the full £643, by the time I have figured food monies etc. and other small transactions, I will have spent my full entitlement (and then some), but it's likely I will get the odd bit of assistance here and there from my mum toward my daughter too.

I don't want to shoot myself in the foot, and based on the 'form', make it look like I can manage on less, and incurr an IPA, which under my benefits payments, I would not be able to do.

Please help.

Thanks

L

TheGardener · 17 June 2019 at 7:37AM

If your only income is benefits, the OR will not calculate a surplus for an IPA.

lian332 · 17 June 2019 at 1:22PM

Thank you. That would make sense.

One final question, I have recently opened a Monzo account, which I was planning to use as my BR (and beyond) account. I'm only 10 days into this months benefits payment, so I it does appear as if I have some cash, whereas its consumed by rent and food etc.

Will the OR look to close or empty this account?

As I understand it, Monzo have no issues with BR clients and there is no loan facility.

But if the OR does go after what cash i do have left, I won't be able to pay my bills.

Thanks

L

TheGardener · 17 June 2019 at 1:50PM

If the cash in your account (any account) is for your everyday living expenses, and the money is all from benefits, the OR will not claim it.
It might be worth withdrawing the cash at the point you submit your application as most banks will freeze accounts temporarily until they receive confirmation from the OR that the OR has no interest in the account.
I have no experience of Monzo but most banks operate basic accounts these days and are prepared to allow BR's to keep them open. However, some (Santander for example) are not generally BR tolerant at all.

lian332 · 17 June 2019 at 3:32PM

Ah ok, thanks for the heads up. Freeze doesn't mean 'empty' the account, i presume. I could withdraw to my paypal, but I cannot spend from there anyways, lol.

So, you're saying, just having some 'actual' cash in your pocket so you're liquid?

Any idea's on time frames, i.e. i submit my application (and pay) today, freeze, unfreeze, officially BR?

Thanks

L

TheGardener · 17 June 2019 at 9:19PM

lian332 wrote: »

...So, you're saying, just having some 'actual' cash in your pocket so you're liquid?...L

Basically yes. It can take a couple of weeks for the OR to get round to telling the banks - it can take a few days. There is no way to tell but I would make sure I had enough cash to cover basic needs like food and transport.
I actually timed my BR to the day after all my wages came in and DD's went out and withdrew all the remaining cash on the way to hand in my petition at court (the electronic submission is quite new) I then put all the cash I withdrew on the form as 'cash in hand'

Getting the timing right can make the whole process less stressful. I opened a new account the day after BR (a Barclays basic in my case) and immediately set about getting all income and DD's set up there. By doing it just after payday - I had the whole month to get things organised.

Incoming and Outgoing confusion

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