My question is about the 10% 50/50 rule.
My proposal states that I can keep the first 10% of overtime and the rest is a 50/50 split.
It does not state if this is on a monthly basis or yearly. In my job I get maybe 2 really good months around xmas and new year, but for the rest of the year no overtime is worked. If the 10% 50/50 rule is applied monthly then I would pay quite a large sum over, however, if it was worked on my annual salary I would probably not have to pay anything as the overall total would be withing the 10%.
As my proposal does not state monthly or annual earnings, where do I stand on this matter?
I noted from a previous reply that Melanie Giles works on a 3 month basis, is this normal for most IVA,s or specific to some.
Should it not state in my proposal, monthly, 3 monthly, 6 monthly, or yearly?
It is normally monthly, unless otherwise specified in your proposal, or agreed with the IP.There is a certain amount of discretion built into this clause.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Being self-employed, in my case this is all worked out annually.
Do you have to submit your Monthly payslips? If so, your bonus will show, and I am sure your case worker will be quick to get back to you.
However, if there is nothing specified in your IVA, I would assume base it annually. After all, your IVA would have been set up based on annual income and your expenditure across the year, thus, basing bonuses etc. on an annual basis as well is not unreasonable.
To be safe, keep the bonus money saved somewhere until review time. If after that, your IP does not mention it, then I would assume it safe to keep.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
The I&E will likley show a monthly income and it will be this the rule is based upon.
Never assume something not mentioned is safe to keep, especially if you think it might be payable. It might get overlooked at annual review -- but every year is reviewed again before completion, and the last thing you want is to have to pay it all back then !!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I cannot disagree with your stance on this matter either.
This is the problem though when an IVA contract does not apparently have clear terms.
To be safe, I suppose the OP ought to put their case in writing to thee IP (not their case worker), and go from there.
But, I don't know the nature of the OP's employment: If at some point for example, they have to take a period of unpaid leave or reduced hours, then they could end up seriously out-of-pocket.
I am not of course advocating any dishonesty here, merely interpreting the contract based on the limited available information and conjecture.
Last edited by UpToMyNeckInIt on Sat Dec 14, 2013 9:50 pm, edited 1 time in total.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
First of all the 10% 50/50 rule does not mean that you keep the first 10% of your overtime so you need to clarify what you have to pay with your IP. If you do have to pay the money over it must be done within 14 days otherwise it can be a default.
Second of all, the rule applies to what you earn each month which penalises those who receive an annual bonus over those who get a monthly bonus. However this is Protocol.
Thirdly, it does not apply to the self employed because they do not receive bonuses, overtime or similar and unless you have a crystal ball no IP can calculate extra earnings for someone who is self employed. The self employed get their cases reviewed annually in line with their tax return and there are no retrospective demands.
Thank you for all the replies.
I would assume that as Michael Peoples says, it will be a a monthly payment, and that is not an issue. I must admit though the contract is poorly written, if this is protocol, should it not be stated clearly in the contract? My contract says nothing about monthly or annual extra payments and it does not say anything about monies being paid within 14 days. Something that needs correcting in my opinion.
IVA contracts should be clearly written, the IP's should not be assuming that I know or understand protocol.
Protocol is a form of IVA which was adopted by some firms and has certain terms and conditions. Not all firms are stuck with Protocol and have different rules. It really does not matter which type of proposal you have because it should have been explained to you at the time.
And there lies the problem.....
No explanation was ever given, in fact no conversation ever took place, just a copy of terms and conditions which in my opinion lack clarity.
Hmmm ..that is not good. To be fair, my IP sent reams of paperwork explaining the process as well as spending a lot of time on the phone answering my questions --- and I believe many IP's do the same.
The problem with Protocol or otherwise is that there is a lot of discretion, in the favour of the debtor, allowed, which is really a "must have" to cope for unforeseen circumstances over a 5 or 6 year period. Unfortunately this does instill an element of doubt and different individuals seemingly treated in different ways. However, I firmly believe that without this discretion many IVA's might fail when they hit a brick wall.
Of course, the application ( or not) of this discretion lies in the IP you have chosen to act for you, which is why it is paramount to choose wisely (when you have that choice, as I appreciate some of us are "sold on").
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Could you not arrange with your employer to split any bonus out on a monthly basis over the next year ? You get to keep as much of the bonus as possible and your employers bonus has a better incentive and better cashflow
I have had a bonus every christmas since I have been in my iva, ranging from 250 pounds to 400 pounds. Every review I send in all my payslips and a spreadsheet. I have not once been asked to pay any of the bonus across. - I am now concerned that as my IVA finishes in July next year that I will be asked for this money ! Can some one please clarify for me !
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by JdT62
I noted from a previous reply that Melanie Giles works on a 3 month basis, is this normal for most IVA,s or specific to some.
I'm with PJG and I've always had to front up each month if I graft and get a bonus (If its over 3 months then that would be lovely, I might even start to claim for overtime if that's the case, I currently have about 1.2 million hours of lieu time built up)
lillyray,
You would be allowed to keep 10% of your normal monthly wage (gross) from your bonus + 50% of anything else above that (if you have the 10/50/50) so it is quite easy to work out.
(Obviously the more you normal monthly gross is the higher the £10% you can keep)
for ease, an example
If your normal monthly pay is £1000 gross and you have a bonus of £400, total bonus monthly gross = £1400
you would be able to keep
£1000 + 100 (10% of normal monthly pay) + £150 (50% of remaining £300) you should have paid across £150.
If life is what you make it, I must have been in a strange mood when I made mine
I don't think I would have ever said we work this on a quarterly basis - unless my clients are weekly paid where you can only really work on such basis accurately. For monthly paid people the review is always carried out on a monthly basis.
