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Income and expenditure form: What it is, and how it works


Creditfix > Blog > Creditfix Debt Help Blog > Income and expenditure form: What it is, and how it works


If you are struggling to pay your debts, you may be asked by your creditor or your bank to complete an income and expenditure (I&E) form.

It should list your monthly expenditure, including income, household bills, and debts, for a well-rounded view of your financial circumstances.

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What is an income and expenditure form?

An income and expenditure form (also known as a common or standard financial statement or budget planner) is a document that assesses your income and outgoings so you and your creditors can fully understand your current financial situation and come to a suitable debt agreement.

It must include information on your net income (your take home pay after deductions), essential costs, non-priority debts, and other living expenses which will be used to calculate your disposable income.

This figure will then be used by your creditors to determine how you will repay your debts so you must ensure the details you provide are as accurate as possible.

An income and expenditure form can be requested if you are struggling to repay a debt, have been rejected for credit, or are in the process of trying to negotiate a payment plan with your creditor.

Why do I need to calculate my disposable income?

By calculating your disposable income (your income minus living costs), you can gain a better understanding of your financial situation.

This can help you find a suitable debt solution that suits you and your creditors.

If the amount of money you owe is more than your disposable income, however, your creditor should be able to come to an agreement with you to ensure your repayment schedule fits within your budget whatever it may be.

If you have an accurate picture of your income and outgoings, you will only pay what you can afford and can protect yourself from overpaying and sinking further into debt.

What should be included in an income and expenditure form?

If you have never filled in an income and expenditure form before, you must know what information should be included and why.

The information you include must also be calculated monthly so if you receive weekly benefits payments, this figure should be multiplied by 52 then divided by 12 before you record it on the income expenditure form.

Your income

In this section, you should list the money you receive on a regular basis. This includes:

  • Income from your employer (including overtime or bonuses if paid regularly)
  • Universal Credit
  • Working or Child Tax Credit
  • Income Support
  • Housing Benefit
  • Jobseeker’s Allowance

This information can be found by looking at your most recent bank statements, wage slips, and utility bills and must include every payment that gets paid into your account on a regular basis from company pay to benefits.

Your essential costs and household expenses

This section is where your most important payments should be listed. This includes:

  • Rent, mortgage, or secured loan payments
  • Car insurance
  • National Insurance
  • Council Tax (Rates in Northern Ireland)
  • Gas
  • Electric
  • Water (excluding Scotland)
  • Fuel
  • TV licence
  • Service charge or ground rent
  • County Court Judgments (Decrees in Scotland and Judgments in Northern Ireland)
  • Magistrates Court fines

Your non-priority debts

This section is for non-priority debts (debts that creditors don’t have extra powers to make you pay). This includes:

  • Unsecured loans
  • Credit cards
  • Payday loans
  • Overdrafts
  • Doorstep loans
  • Cancelled contracts (gym memberships, streaming subscriptions, and mobile phone contracts etc.)

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Any other living expenses

This section is where your basic daily expenses should be listed. This includes:

  • Food for you and your family
  • Pet costs (pet food, vet bills etc.)
  • Parking charges
  • Clothing and footwear
  • Toiletries (including baby items)
  • Public transport
  • Pocket money
  • Health costs (dentist and opticians etc.)
  • House maintenance and repair costs

This information can be found by looking at recent receipts or bank statements.

Your offer of payment

This section is where you will submit your suggested offer of payment for the debt you owe. It takes your income and outgoings into account and is based on what you can sensibly afford.

To calculate your offer of payment, you must take the time to assess the information you have provided and determine what you can realistically afford to pay on a monthly basis going forward.

It can be small, but it must be reasonable and in line with your monthly budget.

Is an income and expenditure form the same as a common financial statement?

An income expenditure form is known by many names and can also be called a common financial statement, standard financial statement, or budget planner.

They are, however, the same and can help you anaylse your monthly spending habits so you can choose the best option for you and your finances.

Where can I get debt advice and guidance on managing my spending?

If you have mounting money worries, there is help and support out there.

Whether you want to get better at budgeting or master money management, our budget calculator can help you gain a better understanding of your spending habits and identify areas where you can cut costs.

If you have a particular question or query in mind, our experienced advisors can also provide free and confidential advice and work with you to help find the best possible debt solution for your financial situation.

Where can I get more advice on Income and expenditure form: What it is, and how it works and other debt solutions?

To discuss your options and get the support you need to deal with your debt today, contact us now on 0800 0431 431 or click the button to get started

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