Hi guys first time poster so take it easy on me!

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Post by Orsm » Thu Aug 26, 2010 4:46 pm
Hi guys first time poster so take it easy on me please :)

I would find it very helpful if someone could answer a few of these questions please.

I am doing an IVA with Playplan and have just made my 3rd payment so just started, at the minute I am paying just over £200 a month towards my IVA, the place I am living at the minute is a big house where I rent a room, I pay £500 a month inc all my bills, my friend has offered a room in his house for the same price £500 inc bills but he has looked into this rent a room scheme where the owner of the property can rent out a room (providing the mortgage company agrees) of a tax free income of £4250 a year thats just over £350 a month, If I was to pay him the £350 as "rent" straight into his account this would be accepted as it is below the tax bracket and would not hve to contact the tax man, but he wants £500, so could I add on the extra £150 on my other expences such as water, elec, gas, council tax and pay him in cash at the start of every month so that it makes the £500 he wants, would payplan need to see receipts and bills to prove the cost of the bills ? at the minute payplan accepted the cost of my rent inc bills as I had proof by showing them the Money coming out of my account each month.

Tina Shortland

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Post by Tina Shortland » Thu Aug 26, 2010 5:14 pm
Hi Orsm - welcome to the forum - we're a gentle bunch honest!

If your landlord is requesting you pay £500 a month to live in the house I believe that is all you should need to worry about. It is not your responsibility how your friend chooses to declare their rental income and what the breakdown between rent and bills is.

You should still be able to show proof by the deductions each month or you could do a standing order to your friends account each month showing the amount requested.

The best thing is to speak to your IP about this as they are the ones representing you.

Keep us posted as to how you get on and hope you get it resolved soon.

Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com

If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.


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Post by MRBLUESKY » Thu Aug 26, 2010 5:20 pm
high orsm if your landlord wants £500 a month then its he,s responsibility to pay any taxes.dont lie on your income and expenditure form.honesty is the best policy in a iva.a iva can help you start a new life so dont mess it up at the beginning.

Michael Peoples

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Post by Michael Peoples » Fri Aug 27, 2010 12:32 pm
Why not pay your landlord the £350 rent which keeps him right for tax purposes and then you both pay £150 per month into a separate 'utility' account. This would show on your bank statement and should be sufficient evidence and your landlord should be fine with HMRC.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com


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Post by luluj » Fri Aug 27, 2010 9:09 pm
is this not dishonest though by the landlord and a way of fiddling his taxes ?? Sorry ...I may have got the wrong end of the stick but if he wants £500 rent a month then thats £6000 a year and over the threshold set by inland revenue !
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