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Topic starter
05/02/2013 7:52 pm
Hello
I have been successful in gaining a new job which I will start at the end of the month with a new employer. This is an increase in salary however it also means I have to increase my commute from 10 miles per day to 60 miles per day which my employer obviously will not pay for so my expenditure will probably equate to roughly what my increase in salary will be. I have notified KPMG and I've to get back in touch in May when I have two new payslips to prove my income.
So, I have two questions - how much more will they increase my contributions? Will they take into account my travel expenditure? I used to have 3 mobile phone contracts and they would only let me use £40 in my review (it was actually £110) so I fear they will do the same for travel?
Secondly, I have the opportunity to teach fitness classes as a secondary income but I would have to register as being self employed. How will this affect my trust deed as I will not be able to forecast my monthly income from it as it would vary from month to month?
HELP!
05/02/2013 8:32 pm
Hello CRC141286 and welcome.
Your payment should be based on your total income minus your reasonable/necessary costs. Therefore your trust deed payment shouldn't change if your commuting expense increase cancels out the salary increase.
Speak to your trustee about a second income. You'll want to know whether they'll let you keep any of the extra earnings (and assuming that they will, how much of it).
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06/02/2013 10:34 am
Hi CRC141286,
As TDA has said, they should review your income and expenditure and make allowances for additional travel costs.
In terms of the second income, as it's hard to forecast, your Trustee could look at a flexible arrangement on a month to month basis. At the end of the month you advise what extra income you have earned and they could look for a fair proportion of this. I think it would be unfair for you to take on extra work and not benefit from it. If you decided not to then creditors would not receive a little extra back.
Best to speak with your Trustee and whatever arrangement you come to, make sure you get it in writing.
Chris is not currently posting in the Trust-Deed.co.uk forum.
06/02/2013 3:00 pm
KPMG will not look at it on a month to month basis (at least they have refused to in my case) They will base your payments on a monthly average (taken from 3 months of bank statements)
06/02/2013 3:40 pm
To be fair to KPMG, I think most trustees would use an monthly average rather than the extra work involved in recalculating your contribution every month. You get to keep the extra amoney in the good months but would be expected to use it to help with your living costs in the quieter ones.
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