Tenancy Deposit Help

06 Apr 2017

A Service person may request an advance of pay to meet the cost of a tenancy deposit if he/she wishes to rent and reside a private property in the UK.

Service personnel appointed to an assignment overseas already qualify for up to 4 months’ net pay (depending on circumstances) which can be used towards a tenancy deposit if required

In England and Wales a deposit can be registered with the Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme.

Eligibility: within 45 days of receiving the advance, personnel must provide Unit HR with evidence that the advance has been used to secure a rented property and that their landlord has protected the deposit in a Tenancy Deposit Protection Scheme8. This evidence should normally be a copy of the certificate confirming that the deposit has been protected in a relevant scheme. This scheme is not available to personnel already in receipt of LSAP or FHTB (see 01.0505l).

Affordability: in conjunction with their Chain of Command, personnel are responsible for ensuring that they can afford to repay the advance, alongside other advances and living costs. An individual should be aware that an advance is classed by HM Revenue and Customs as a beneficial loan

Approval: approval is required by a Commanding Officer or Delegated Authority. An individual will be required to sign a waiver from the Minimum Drawing Rate considerations.

Repayment: the advance will be repaid within 12 months or prior to an individual leaving the Armed Forces, whichever is the shortest period, although an individual may elect to pay off the debt more quickly if they choose.

Confidentiality: personal information must be treated confidentially. Personnel may redact the names of other tenants from the Tenancy Deposit Protection Scheme prior to showing it to their Commanding Officer or Delegated Authority. Additionally, after evidence has been provided, the certification should be returned to and retained by the Service person for audit purposes and no central copy should be held.

Application; Individuals can apply for an advance of pay using Form JPAE004.

JSP 754 (tri-Service Regulations for Pay) refers.