Bonus payments

[daveb]

Hi,

I have recently completed my first annual review, although I have not heard back from Accuma since sending off all my payslips etc.

I am a little worried, as during the year I received a bonus from my employer of £400. I used this to repay my parents after they had helped me with car repair costs. (My work horse is getting very tired). I have recently learnt from these forums that bonuses should be submitted into the IVA. Would this fail my IVA?

I know I should have been aware of this from my agreement documents, so it would be my own fault, but do I have a valid argument as repair costs were much more than my bonus payment?

Any advice would be appreciated.

Dave B

[adam090376]

Hi Dave
With regards to your bouns. It depends on the terms in your IVA agreement regarding overtime and bouns. Most of them state that 50% should be handed over to your IP. Do you know what you IVA states. I would contact your IP for advice and inform him of what you have done. Honesty is always the best option when dealing with your IP I am sure you can come to an agreement. I am one of the lucky ones who does not have this clause in my agreement but I am aware that although I do not have to pay 50% of overtime and bouns every month my contributions could increase at the annual review. I do not know how much this would be maybe one of the experts could give me a general idea?
Adam

[Adam Davies]

Hi Daveb
Check your chairmans report for details as to how overtime and bonus is to be dealt with but the most common clause is that 50% must go into your IVA.
Your IP is duty bound to collect this and I suggest if this is the case that you arrange to pay an extra £20 over the next ten months to repay this
I think IPs should be asking for wage slips every three months rather than just at the annual review
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Whether you have the 50% uplift clause or not, your IVA proposa will provide to receive windfalls, and a bonus is classed as a windfall unless expressly detailed otherwise.

To the original poster - if you have kept the receipt for the car repairs, hand this to your IP in mitigation of the need to pay over additional monies - but ensure that your own car allowance budget was utilised in the first instance.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[daveb]

It seems that I do not have a 50% clause, but it does mention windfalls. does this mean I will have to pay over every bonus in full to the IP? This sounds fairly harsh.

[melanie.n]

Yes 50% i'm afraid, as Melanie stated above, bonus, overtime etc are classed under the term 'windfall' and can be picked up at annual review stage.
One way to ease this is - say for example you have a one-off bonus/overtime payment, keep 50% of it to one side, the other half is free to do with as you wish, and come review you have the money ready, if and when asked for OR if a sizable one-off payment (eg £1,000)contact your IP and inform them at the point that you received the bonus, they may then ask for it at that point, which would save you from keeping hold of it until the review, and eliminate the temptation of dipping into it later down the line. We are all human, and whilst living on a budget, if £500 was lurking somewhere, i'd dip into it like most people.

Hope this helps
Melanie.n

[daveb]

Hi Melanie,

Is it possible though for the IP to demand 100% of any bonus payment? I would think that would be a little unfair. I can understand the 50%, but this is not stated in my agreement?

[debbiw]

Hi, The best thing to do is speak with your own IP, as he knows the ins and outs of your individual IVA. He will be able to tell you this x

[MelanieGiles]

If you don't have the 50% provision, then technically all of your bonus is payable to the IP - although they may agree a lower contribution with you directly.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
I think that any bonus should ALWAYS be treated under the 50/50 rule and would fight anything different to this.
Windfalls are lottery wins,inheritance etc.
Why the industry can't have a set criterea baffles me.Common sense must always prevail and nobody,in any industry,would work hard to achieve a bonus if all of it was to be taken from you,no matter how driven and disciplined they were.
Why have to rely on negoiations with your IP ?
Some people can never get hold of their actual IP.
Let's have a standard clause in all IVAs that bonus and overtime are treated on a 50/50 basis so that everyone knows where they stand.
Regards


Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Martin2011]

Here here, that's another banner I need to write up! Seems logical to me, 50% provides the incentive to do the work and it benefits everybody involved...

Martin