Agreed IVA Expenses Amounts

Agreed IVA Expenses Amounts

This article provides a guide to the amounts you can include in your IVA expenses budget. Using the figures will help you create a realistic budget and understand what you will have to pay into your IVA.

Included in this article:

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The agreed monthly IVA expenses amounts

There are many different types of expenses which you need to consider when completing your living expenses budget. The categories and figures shown below are a good guide to the amounts you will be allowed.

It is important to remember, the amounts are not guaranteed. Your creditors may accept different amounts (either up or down) depending on specific nature of your circumstances.

Priority Expenses

These include your rent or mortgage, Council Tax, utility bills and childcare or maintenance payments if you have them. There are no pre-agreed guide lines for these items. When creating your budget you can refer to your bank statement or agreements and simply include the figures you pay.

Food Shopping  / Housekeeping – Maximum

Single Person: £220
Couple: £350
Each additional Child: £90
Pet food: Variable depending on animal(s)

The figure you write down in this category should include what you spend on toiletries and cleaning products.

Meals at Work – Maximum

Single Person: £40
Couple: £80 (given both working full time)

Sports, Hobbies & Entertainment – Maximum

Single Person: £30
Couple: £40
Each additional Child: £10

Clothing (not including school Uniform) – Maximum

Single Person: £30
Couple: £50
Each additional Child: £20

Dental & Opticians Checks – Maximum

Single Person: £20
Couple: £30
Each additional Child: £0 (Free on NHS)
Note: Additional medicines and prescriptions can be added on top of these amounts

Hairdressing – Maximum

Single Person: £15
Couple: £25
Each additional Child: £5

Child Specific Expenses – Maximum

School Trips: £10/child
Pocket Money: £10/child
Uniform: £17/child
School Lunches: £40/child

TV & Internet – Maximum

TV License Fee: £13
Household: £80

Mobile Phone – Maximum

Single Person: £35
Couple: £70
Each additional Child: £10

Transport and Travel – Maximum

Car fuel (per vehicle): £195
Car maintenance & MOT (per vehicle): £35
Public Transport: Variable depending on personal journeys

Emergencies – Maximum

Single Person: £20
Couple: £40
Each additional Child: £10

Other Expenditures – Maximum

Dry Cleaning: £10/person
Newspapers: £10/person

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What to do if you need to spend more?

The allowances highlighted above are meant for guidance purposes only. They are indicated as maximum amounts. However this may not always be the case.

You may have special circumstances where you need to legitimately spend more than suggested above. For example a medical condition may mean your housekeeping expenses are higher. Alternatively you may need to drive a long way to work every day. This could mean your petrol costs are higher.

Where this is the case, you should include the realistic amounts. But do expect to be asked to justified and prove these.

You will normally need to pay at least £100/mth into an IVA. If this is not available after all your living expenses are taken into account, you may need to cut back or consider a different solution.

Can your IVA expenses figures be rejected?

When completing your IVA expenses budget, start with figures you believe you need to spend and are suitable for you and your family’s circumstances. However, expect that some of these may have to be changed.

We can review the figures with you and advise as to whether they will be acceptable to your creditors or not. If we feel the amounts are too high, they could be changed or you may have to be ready to reduce them later.

The budget will be reviewed by your creditors. They want to make sure you are making your best effort to repay as much of your debt as you can. If they feel the amounts you have included are too high, they may demand a reduction and associated increase to your proposed payment before they accept the agreement.

An IVA can be rejected because the expenses budget is too low as well as too high. You need to ensure you have enough to live off before starting the agreement.

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