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By James Falla
Hi there Casey

Great news on getting the job!! I think you are over worrying on the zero tax code thing.

Basically the OR will ask you to do a new income and expenditure budget based on the normal take home you get from your new job after tax is deducted. From that they will establish whether they feel you have enough income to live on. If they feel that your new income after tax covers your living expenses adequately they will of course not issue an IPA. However they will tell you that any additional money you get as a result of changing your tax code to zero should then be paid monthly to them.

The OR will only allow you to keep some or all of the tax if they feel that even after receiving your standard income you are still struggling financially.

Given that you are not allowed to keep any of the tax yourself you then pay over this extra money you are receiving until the end of the tax year (ie April 14) when your tax code will then go back to normal and tax will be deducted from you as normal again.

This payment of your tax to the OR is not an income payment agreement (IPA). Once your tax code goes back to normal next April the payments will stop. However there is still no IPA in place. This would only happen if your income increases and you then have more income than you need to cover your reasonable living expenses.
By Casey
Hi James,

Thank you so much for your reply and also telling me that I am overworrying which I guess I do.

I will be paid tomorrow for the first time and I shall then let the OR know about the change in my cirumstances I guess they are then sending m a new expense claim form. By looking at your expense claim form I did leave quite a few things out but I could try to add them now, what do you think? Especially things like work lunches etc. I guess all that can happen is that the OR is saying no?

Anyhow, there was a programme on yesterday night at LBC Radio about debt and how people have managed and what they did to get help I decided to call and they put me on air and I mentioned Beatmydebt in a very favourable way, so hopefully that will help your business. I cannot say how much I thank you for all your help again.

Kind regards,

Casey :)
By Melissa S
Hi Casey

There is nothing stopping you from adding things that you left out to your new expenses form. As your circumstances are being reviewed due to the change of income this should not be a problem.

It is great news that you mentioned Beat my debt on the radio as it is a great way of getting help to all the people that need good advice and support when they are struggling with debt so a big thank you on behalf of the forum :D

Enjoy getting your first pay cheque tomorrow
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By Geraldine
Hi Casey

I hope you got your first pay cheque today as expected. That must be a great feeling :D

Once you tell the OR about your change of circumstances you are right, they will send you a new income and expenses form to complete. You must absolutely add any new expenses that you feel you let out of your original form. Especially things like meals at work, dry cleaning, extra travel, emergencies etc etc. Basically add everything on the BMD living expenses guide that you missed first time round. Normally ORs are very reasonable about things like that and you should be allowed to have them in you new budget.

Thanks so much for mentioning BeatMyDebt.com on the radio. Anything anyone can do to help promote what we do is really great :)
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By Hayden
Brilliant news about getting the job Casey. I am really pleased for you :D

As the other posters has said when you get your new income and expenses budget form from the OR do not worry about adding all the expenses you are allowed in the living expenses guide. The worst that is going to happen is that the OR will question some of them and might say they do not think they are all reasonable. But at the end of the day if you don't ask you don't get......

Very brave of you to go on the radio by the way. And many thanks for giving us a mention.
By Casey
Dear Geraldine, Melissa and Hayden,

Many thanks for your kind words.

Yes, my first pay I got last Friday and it made me feel quite good, it is hardly more then JSA but I am off the benefits which was my main aim and I like the job on top of it! It is only temporary but one never knows what will happen and at least I will be in employment for a while if nothing else and that is good for my CV. it has also giving me some focus again and I do need to get out of bed in the mornings though I am studying as well, it feels so much better to do some work.

Thank you very much for your advice about the expense claim form and what I can add that helps me a lot. I have no intention to make some of my expenses up but I was wondering whether the OR will ask for proof of in form of sending him the gas bills, travel cards etc. I am asking because some of it is of course approximate costs and also at present because I have still very little income I am using my bike to go to work but would like to buy a travel card now that it is so cold but still have not enough disposable income to buy a monthly pass but I would like to add the travel money on my expense claim form.

PS Thank you, yes, the Radio talk was a bit daunting but when I heard that the show was about the high personal debt in the UK and how people are coping and it was also about which debt agencies to contact, I felt that I had to call and tell my story and mention you too. I used a different name and living area so I stayed anonymous.

Many many thanks.

Kind regards,

Casey :D
By Carla
Hi Casey

I have not been on the forum for a while and I was really pleased to hear about your job. That's great news :)

In terms of proof of your living expenses I do not think that the OR will ask for proof of things like travel cards etc as long as the expense seem reasonable. As such you can include this budget but then if you decide not to spend it and use your bike instead this is not an issue and the money you save is yours to keep.
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By Geraldine
Hi there Casey

At the end of the day the OR can ask for any proof of living expenses that they feel are appropriate to confirm what you are telling them is correct. However as Carla says it is very unusual for an OR to ask for verification of normal and standard living expenses such as public transport or utility bills as long as they seen reasonable in the context of your particular situation.

It is also right that once your living expenses budget is agreed this is then yours to manage. If you decide not to spend some of your allowances and save some of the money, these savings are then yours to keep and will not be touched by the OR.