Hi all
I get an annual bonus from work and i know that if you get a bonus or over time etc that equals more than 10% of your earnings then this has to be declared and 50/50 split to you and creditors. Now the bonus works out just less than 10% of my salary so therefore dont have to declare it. However could i offer this bonus as 1 years worth of IVA payments (as this works our roughly the same) and reduce the length of the IVA? ie reduce by 1 year. Hope this makes sense?
You can save up your bonus ( or your share if it tips into giving up some over the 10%)until you have enough to make a full and final settlement. There is no mechanism to make an advance payment to save a year at a time. You could put by a years bonus shares and pay it over at the start of the final year and save the year that way.
Does that make sense ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If the bonus is paid as a one off payment then check your documents. In our case, it was for the month it was paid in and not annually. If you take home £1000 per month then you can have £100 each month i.e. £1200 per year. If you had an annual bonus paid of £1200 in one month, you would keep £100 and split the £1100 50/50 thus meaning you only keep £650 in total. Does that make sense? Check your wording and payment date carefully.
As for the bonus it is an annual bonus based on my personal performance on the year and the companies performance over the last 12 months, not just a one off monthly payment.
Bobbydavro - check your own terms as it may be an annual bonus but if it is paid once a year you may only be able to keep 10% of your monthly pay & then split the rest 50/50.
It doesn't matter if it is an annual or monthly bonus, some companies will base the payover on when it is paid to you not on the period over which the bonus is earned.
Hi the following is snip at the section in my IVA terms regards to extra income:
Additional Income: Where I am employed, I understand that I must report any overtime, bonus, commission or similar to the Supervisor if not included in the original surplus calculation, where the sum exceeds 10% of my
normal take home pay. I agree to the fact that disclosure to the Supervisor must be made within 14 days of
receipt and 50% of the amount (over and above the 10%) shall be paid to the Supervisor within 14 days of the
disclosure. I am aware that if I fail to disclose any such overtime, bonus, commission or similar, it will be
considered a breach of the IVA and the Supervisor shall notify the creditors in the next annual report with
proposals for how the breach is to be rectified. I understand that the latest Income and Expenditure review will
provide the surplus for the basis of calculating additional income year on year.
As you can see it is not specific to monthly or otherwise, just refers to nornal take home pay so the bonus i get is based on my normal annual take home pay
Foggy, i am not trying to dupe the creditors its just that my employment contract states i am entitled to a bonus, paid anually, based over the last 12 months of both personal & company performance.Therefore surely this must be divided equally over the 12 months when calculating. If not then i might aswell ask my company to make 12 monthly payments totalling the overall bonus so i dont get told off
I would suggest that you make that request of your company. If the bonus is paid in one month then the whole bonus will be subject to a deduction of 10% of monthly salary and the rest split 50 / 50.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
That's not the way creditors will see it unless you are exceptionally lucky. Could your employer pay it monthly to you over the coming year? It will show on your P60 at review so you wouldn't be able to dupe them even if you wanted to!
Whats best then, speak to my work company first or speak to my IVA company to see what the rule is in my particular circumstance. Only problem is if i speak to IVA people then im bringing it to their attention.
I am sorry but I am unable to actually advise you what to do as I am not qualified to do so, nor am I fully conversant with your particular case or the way your IP works.
If I were in your shoes I would suss out the company first.But ...... Do they know you are in an IVA ? Would you want them to know ? They will want to know why you want the bonus paid over 12 months.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Whereas I would speak to my IP. They know you are in an iva and will find out about the bonus from your P60 at review and when it was paid as they can request payslips. If they agree with you, you don't need to mention it at work.
My annual bonus is paid in one month and is subject to the 10/50/50 rule. Unfortunately it can't be argued that it is over 12 months. Look on the bright side though: You get to keep over half of it!
I get commission at work, and our IP has stated that we can keep ALL of the commission payments each month, so long as the annual income, plus the 10% extra does not go over our allowance. Our Allowance was based on a figure of £2564/month (but we dont always get that, sometimes more, sometimes less). So:
monthly Allowance: £2564
Allowance +10%: £2820.40
so long as our annual total does not exceed 2820.40*12 (33,844.80) we can keep all of the monthly commission payments.
We obviously need to keep a close eye on things and make a judgement call each month based on what future payments we may or may not get.
I guess what I'm saying is, speak to your IP to get their view - as it's clear that it's not a one-size-fits-all arrangement.
