There is nothing wrong in including overtime or other regular payments as part of salary, so long as there is a good track record of having received them, and that this is highlighted to creditors within the IVA proposals.
As an IP in practice, I would rarely want to include overtime, as it never can be guaranteed - but there is nothing different in doing this and losing it, as someone who enters into an IVA using just basic salary and is then put on an enforced 4 day week. No-one has crystal balls when they enter into IVAs, and neither to the IPs who are providing the advice at the outset.
In this case, I would have thought that a full and final settlement using the PPI monies - which will be treated as a windfall - is eminently sensible.
