I posted last week that OH had the threat of redundancy. Well, he's had the meeting and it's not looking good. They gave him a letter with a figure on it.
May be one of the experts can advise (Melanie is our IP): He's got a weeks notice for every year he's been there (9) plus redundancy pay capped at £330 per week for 9 years - in effect 18 weeks pay. Which will equal about 3.5 months pay.This will give us 3 months for him to get another job and we'll still pay the IVA contribution.
Is the 9 weeks redundancy pay subject to tax and NI?
How will our IP treat the redundancy pay? ie. will we have to pay over 50%?
IVA completed September 2014. Finaly debt free - final dividend 88p/£
Redundancy pay is not be subject to tax if it is under £30,000.
Your IP will not seek the redundancy money as a windfall. It is compensation for loss of office and as such needs to be used to supplement your lost income until alternative employment can be found. However, if your husband walked into a new job next week, any surplus money would be deemed to be a windfall and therefore subject to those provisions of your IVA.
Just another question! If he wanted to retrain and do a course (HGV licence) will he be allowed to use his redundancy money and then pay over any surplus after that? Also, if he needed a car to get to work (as his company car would go back), could we use some of the money for a cheap car?
IVA completed September 2014. Finaly debt free - final dividend 88p/£
HI Suzanne
I think this would be best broached with your IP ... but speaking as a layman it looks like a pretty good idea as your are using the funds to stay in work or at least quickly find employment. If he didn't retrain then there is no certainty that he'll find work quickly. so, go ahead , ring your IP.
When I was young I was called a rugged individualist
When I was in my fifties I was considered eccentric
Here I am doing and saying the same things I did back then and now I'm labelled senile
There is no certainty that you will find HGV work. I have been looking since the middle of July. Unless i want to work all the hours under the sun for nothing then im struggling to find anything. I hope there is more HGV work available in your area.
Steve, I can certainly endorse what you have said there. My best man, a lifelong friend, has always worked for agencies as a HGV driver as he has a sideline in acting which is his first love. Whenever not called upon to act, he has ALWAYS worked for decent money from the agencies.
There is now NO work in that field, so he is now working all hours god sends as an auxiliary in a very busy A&E Dept, for much less of an hourly rate that he used to get driving Artics.
All things must pass though, at least according to George Harrison, so good luck to you in securing employment.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
If I were your IP I would be happy to support a reasonable level of expenditure in order to assist you find suitable alternative employment - but first remembering that redundancy money is payable as compensation for loss of office until you find a new position.
