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How your Direct Debit is calculated

direct debt calculation

If you would like to know how we work out your direct debit, please look at the calculation set out below.

Tenants

Weekly rent (- less any Housing Benefit if received) x number of weeks left in financial year plus one week for advance payment = Total 1

Total 1 add arrears or subtract credit = Total 2

Total 2 divided by number of months left in financial year = Total 3

Total 3 = monthly payments

 

For Example:

Weekly rent of £100.95

Weekly Housing Benefit £15.50

33 weeks left in financial year

8 months left in financial year

Arrears of £22.78

 

£100.95 - £15.50HB = (£85.45) x 34 weeks = £2905.30 (total 1)

£2905.30 + £22.78 = £2928.08 (total 2)

£2928.08 / 8 = £366.01 (total 3)

Monthly rent = £366.01

 

Garages

Weekly rent x number of weeks left in financial year = total 1

Total 1 divided by the number of monthly collections left in financial year = total 2

Total 2 will be your base rate monthly collection

Please note that we also collect 4 weeks advance payment, along with any arrears or taking off any credit, across the first two monthly collections.

 

For Example:

Weekly rent £12.02

33 weeks left in financial year

8 months left in financial year

Arrears of £35.00

 

£12.02 x 33 = 396.66 (total 1)

£396.66 / 8 = £49.58 rounded down (total 2)

Advance payments + arrears

£12.02 x 4 = £48.08 + £35 = £83.08

£83.08 / 2 = £41.54

£49.58 + £41.54 = £91.12

First two collections will be for £91.12 followed by 6 collections of £49.58

Leaseholders

The outstanding service charges are divided by the number of months remaining in the financial year minus 2 as February and March are set to collect zero. The ground rent will be collected in the first monthly payment