IPA about to ruin my life.

Jaypsarticus · 12 July 2018 at 9:57AM

Hi Everyone, thanks for the replies.

Basically we just want to move in together but the money my partner loses in benefits i will need to provide back to her. We have spoke about me paying a rental agreement of £700 a month which is what i pay rent now and this will cover her benefits lost. Problem is this then become an income for her at a value of £8400 a year which if she declares she will have to pay tax on as she earns £8000 from her current job. Basically she will let me move in, sacrifice £700 a month in benefits, the OR will see that i am £700 a month in profit and take it from me leaving us as a family £700 down unless i can use the whole families Expenditures ( 2 adults, 2 children 12,18 and my daughter whole lives with us 2 days a week) ?

Jaypsarticus · 12 July 2018 at 10:43AM

This is what we have quickly drafted up based on a family of 4 with an extra child on a weekend
Partners monthly income after tax....... 800
My income after tax .....................2100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2900

Monthly Expense Details
Mortgage................................ 320
Secured/HP loan repayments.............. 520
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 126
Electricity............................. 55
Gas..................................... 92.5
Oil..................................... 0
Water rates............................. 16.17
Telephone (land line)................... 9.99
Mobile phone............................ 51 3 mobiles
TV Licence.............................. 12.12
Satellite/Cable TV...................... 41.33
Internet Services....................... 18.11
Groceries etc. ......................... 600
Clothing................................ 60
Petrol/diesel........................... 400 2 x cars
Road tax................................ 27
Car Insurance........................... 73
Car maintenance (including MOT)......... 80
Car parking............................. 15
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 15
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 12.23
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 40
Total monthly expenses.................. 2694.45

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 60000....(320)......0 partners mortgage
Hire Purchase (HP) debt ...... 9000.....(280)......0<
(Unnamed debt).................6000.....(240)......0 Partners car
Total secured & HP debts...... 75000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,900
Expenses (including HP & secured debts). 2,694.45
Available for debt repayments........... 205.55
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 205.55

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -75,000
Total Unsecured debt.................... -0
Net Assets.............................. -75,000

is this how i would present it ? does this look normal?

Am i right in thinking that if our combined outgoings are £2694 and i pay 75% towards those at a cost of £2020 then my surplus is actually £80? im so confused ha! i dont want to submit this if its wrong and i get a £500 IPA?

joa1210 · 12 July 2018 at 11:32AM

i would use the whole family income and expenditure for sure, as it gives no-one a massive surplus so to speak i'm not sure on the figures there are more qualified than me on here to help with that as i'm not sure £50 month for holidays would be accepted but it could be put somewhere else perhaps and maybe other bits could be increased etc.

Jaypsarticus · 12 July 2018 at 11:36AM

Hey Joa1210

I appreciate your response. hopefully i can get it sorted in our favour otherwise my Partner will not let me move in ha!

PaulL2 · 13 July 2018 at 5:34PM

Don't forget the amounts in the SOA are allowances - they have to be fair, realistic and appropriate to your situation but the OR is unlikely to be asking for receipts or bills at any point (they simply don't have the time or inclination).

Many people have included allowances for renting their room from their parents, at the market rate, plus a fair share of bills. Whether the cash actually ends up in the parents' hands or down the pub is neither here nor there! Why should it be different for girlfriends? The OR can't ask to look at her mortgage agreement or for copies of her bills or bank statements as they are hers and she has no legal connection to you.

Why not 'lodge' with her for now? Or am I wrong? Just trying to come up with ideas...

desole · 13 July 2018 at 6:55PM

Take that SOA data and split the costs so that you are contributing 50% of £1400 worth, thus you do not create a tax liability, just sharing expenses.

IPA about to ruin my life.

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