How does it work if I move in with girlfriend whilst in an IVA?

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Hyperlogic2

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Post by Hyperlogic2 » Mon Apr 06, 2020 11:28 am
Hi. I am 6 months into my IVA. When i setup i was living alone in my rented house. Now I am wanting to move in with my girfriend in her house. I know this won't affect her situation but I need to contribute to her mortgage / bills etc. How do I approach this with my IVA IP? Obviously I want to contribute as much as I can towards the bills and ideally go 50/50. Is this possible? EG if I spend £1000 a month on rent / bills at the moment and contribute (for example) £200 to my IVA a month would I be able to contribute £1000 to the split morgate / bills and still pay the same to the IVA? Many thanks.

Foggy

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Post by Foggy » Mon Apr 06, 2020 11:52 am
The simplest way to deal with this would possibly be for you to move in on a house share basis --- with the g/f charging you rent as a tenant / lodger, as opposed to partner. So you would have a fixed rent and a service charge for utilities. Your food allowances will be limited to the guideline figures for a single adult (up to around £220 a month). Most of your other allowances will be much the same.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Hyperlogic2

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Post by Hyperlogic2 » Mon Apr 06, 2020 12:05 pm
Many thanks. So she could charge me a fixed rent including utilities of say £600 a month? Just wondering? Does she just have to document this charge? Sounds like a great option. Many thanks. any further information on this way of doing it most welcome.

Foggy

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Post by Foggy » Mon Apr 06, 2020 1:36 pm
They may require sight of a tenancy agreement and check that the charge is the going rate for the area --- that aspect will be down to the policy / thoughts of the individual IP.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Hyperlogic2

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Post by Hyperlogic2 » Tue Apr 07, 2020 10:27 am
Thanks. if rent, council tax, utilities etc are included in the agreement would that be ok? of course it would be fair share!

The agreement would be including everything I guess?

Thanks very much.

Foggy

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Post by Foggy » Tue Apr 07, 2020 1:01 pm
It is common for lodgers / tenants to pay rent and a contribution to utilities (power, CT share, landline, maybe even wi-fi these days) . Food and household goods would be seperate and your responsibility.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

SteveUK

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Post by SteveUK » Thu Apr 09, 2020 8:07 am
Would she need to declare the rent as income to HMRC?

Foggy

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Post by Foggy » Thu Apr 09, 2020 9:17 am
Thu Apr 09, 2020 8:07 amSteveUK wrote:
Would she need to declare the rent as income to HMRC?
There are, of course, other possible ramifications, outside of the IVA and beyond the scope of this forum, which would need to be investigated.
One such being the tax position, though there are certain allowances in this regard. Also the council tax single occupancy discount will go, if she gets it and certain benefits might also be affected whether the OP moves in as tenant or partner.
Consideration will also need to be given to the property ownership situation --- if rented, will the landlord agree? If mortgaged, will the lender agree ?
Also household buildings and contents insurance -- what are the insurer's policies in this regard ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

luluj

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Post by luluj » Tue Apr 14, 2020 2:19 am
Whilst I agree with all that foggy has said ... I just wanted to add .... life is too short to worry over things ... grab the opportunity whilst you can, sort the detail out ... and enjoy living together !

If your expenses won't change, just your property address then work around the small hurdles

Happiness comes first ....

Stay safe and well if you move during this time !
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

Hyperlogic2

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Post by Hyperlogic2 » Tue Apr 14, 2020 7:04 am
Many thanks. I think we will go down the "renting" to me option. This does open up some other questions such as her declaring this as income and possible impact on child tax credits. Unless I have this wrong? I did see that this could come under the "rent a room" option available. I don't want to break any rules but want to do this the best financial way possible obviously. Does anybody know if i need to have an agreement written up with the figures on to give to StepChange or will the monthly bank transfer of rental money be enough? No doubt they will want a look at my new balance sheet of incoming and outgoings as on paper I will have more spare money now as the rent she will charge me will be less than me running a house on my own (which I was doing).

If there are any other viable options please let me know!

Many thanks
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