Expenses

[juditka]

Hi everyone,

I have a question about expenses, my husband travels to and from work about just about 70 miles daily and sometimes goes to customer's sites to do whatever he does.

Now, his company pays him expenses for his travelling because he uses his own car, some pence per mile.

What category does this fall in regards of the IVA?

Thanks for the advice.

[Oliver]

Hello Juditka

The income section would include the average reimbursment that your husband receives for petrol costs and the expenditure section would have a budgdet for this said cost thus cancelling each other out. Your husband then might have an added budget for his private petrol miles.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[juditka]

Thanks for your reply Oliver,
I understand what you mean but, wouldn't these expenses then be construed as extra income which is in real sense not?

We always thought of this as reinboursment for the running of the car, petrol, service, repairs and so forth... and shouldn't be reflected towards the IVA, well in my opinion.

More input on this would be much appreciated.

Thank you again.

[Oliver]

If this is a regular occurance it is likely that your IP will just allow the income and expenditure on the petrol to cancel each other out.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

This would definately not be included as you income. Income should be based on basis wages only.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

Juditka
I presume that your husbands travelling to and from his usual place of work is not re-imbursed by his employer.If this is the case then just put down his travelling costs to and from work under the car expenses part of your expenditure.Be sure to include running costs such as service and repair.There would be nothing to put in the income section other than his actual wages.
Any money paid for business travelling will be disregarded by your IP when assessing your income as it has been used to pay for just that,business.
Is the money paid seperate to his salary ?

[juditka]

Thanks all for your sound advice,

Neverending, this is for his travelling to and from his company's customer sites as he is part field engineer.

The money is not included in his salary but shows on his payslip as expenses and is exempt from taxes.

Thank you again.

[neverending]

Hi again
Well you will have to show this "income" on your forms and as Thomas Charles states counteract it with at least this amount as travelling/car expenses.
Interesting to see Melanies views on this

[MelanieGiles]

I would exclude it from both income and expenditure. This travelling is being done for your husband's employer, who reimburses the cost. It has no place in a household budget in my opinion, but other IPs might treat it differently.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

The point is does he pay any private mileage?
This cost must be put in the expenditure part of his income and expenses form ,as must a cost for repairs and servicing.
I agree that the cost of any business mileage that is repaid by the employer can be ignored but make sure that you allow for private costs in your proposal.
Regards