Bonus

[VictorMeldrew]

Hi, As a reward for my efforts in 2013, my company will be paying me a one off bonus in my next pay slip.
Do i have to pay any of this to my IVA or can i keep it?

[Pennyless]

Victor your going to have to check your IVA documentation to see what the score is on windfall/uplift payments...it can vary.

[Foggy]

As Pennyless says -- the answer will lie in your paperwork -- hopefully you should get to keep at least half.

It will not fall under the windfall clause, but extra income, which is usually dealt with under what we refer to as the 10% 50/50 rule.

[kazzafunk]

I agree - bonuses were specified in our IVA as being captured under the 10 50/50 rule.

[VictorMeldrew]

what is a 10% 50/50 rule?

[Foggy]

If it's in your paperwork, it's related to extra earned income ( bonus, overtime). You keep the amount equivalent to 10% of your normal take home pay, then split the remainder 50/50 with the IVA.

[VictorMeldrew]

ok thanks..so that means i get to keep any bonus as long as it doesn't exceed 10%? then if it does i then keep half of whats over?

[Foggy]

That's 10 % of the normal monthly take home. So:

If take home is £1000 and bonus is £300, you keep 10% of the £1000 = £100 and then split the remaining £200 50/50. In this way you get to keep £200 and pay across £100.

Some proposals have a straight 50/50 split, with no 10% disregard.

Some have other criteria.

[luluj]

Foggy explains the 10%50/50 rule well .... Think of it though ..... It's money you never had and you get to keep some of it? It's better than none !

[VictorMeldrew]

thanks all